If a household's income falls from $20,000 to $17,000 and its consumption spending falls from $18,000 to $15,000, then its _____
Fill in the blank(s) with the appropriate word(s).
marginal propensity to save is 0.
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Refer to Figure 12.6. Under a fixed exchange rate system, the central bank cannot increase the output gap with expansionary policy and still maintain the fixed exchange rate if the economy is at
A) point A. B) point B. C) point C. D) point X.
Minimum-wage laws dictate the
a. average price employers must pay for labor. b. highest price employers may pay for labor. c. lowest price employers may pay for labor. d. the highest and lowest prices employers may pay for labor.
Tetanus is caused by:
A. a bacteria. B. a missing gene. C. an autoimmune response. D. muscle strain.
Suppose the equilibrium real federal funds rate is 5 percent, the target rate of inflation is 3 percent, the current inflation rate is 5 percent, and real GDP is 4 percent above potential real GDP. If the weights for the inflation gap and the output gap
are both 1/2, then according to the Taylor rule the federal funds target rate equals A) 1 percent. B) 9 percent. C) 13 percent. D) 17 percent.