The marginal propensity to consume:
a. is the proportion of disposable income that is consumed
b. is the ratio of disposable income to consumption.
c. is the change in consumption relative to a change in disposable income.
d. minus the marginal propensity to save must equal 1.
e. is greater than 1 at all levels of income.
c
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When a financial intermediary purchases a nontraded claim of either a business or an individual, its main concern is with
A) interest rate risk. B) credit risk. C) reinvestment rate risk. D) None of the above.
The long-run supply curve in a constant-cost, perfectly competitive industry is
A) perfectly inelastic. B) upward sloping. C) downward sloping. D) perfectly elastic.
A firm's cost can decrease for each of the following reasons, EXCEPT:
a. an increase in productivity due to experience. b. an improvement in productivity of capital employed. c. an improvement in work environment and quality of management. d. an increase in input prices.
Which of the following will cause an economy to grow?
a. greater availability of resources b. an improvement in the size of resources c. technological declines in existing use of resources. d. none of the above will cause an economy to grow