If the marginal propensity to save (MPS) is 0.5 and net exports falls by $100 million, then
A) real Gross Domestic Product (GDP) will increase by $100 million.
B) real Gross Domestic Product (GDP) will fall by $200 million.
C) real Gross Domestic Product (GDP) will not change.
D) the effect on real Gross Domestic Product (GDP) cannot be determined from the given information.
B
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If supply and demand both shift to the right, equilibrium quantity:
A. falls, but the equilibrium price may rise, fall, or stay the same. B. may rise, fall, or stay the same, but equilibrium price will fall. C. rises, but the equilibrium price may rise, fall, or stay the same. D. may rise, fall, or stay the same, but equilibrium price will rise.
Geometrically, marginal cost at any level of output may be interpreted as the slope of
A. the total cost curve at that level of output. B. the average variable cost curve at that level of output. C. a ray to the total cost curve at that level of output. D. the isoquant at that level of output.
One essential force in the growth of human capital over the past several decades has been
A. the community college system. B. the growth of Social Security. C. the growth of Medicare and Medicaid. D. the reduction in the inflation rate.
Which of the following will cause the demand curve for beer to shift right?
A) a fall in the price of beer B) a fall in average incomes of beer consumers C) a decline in population D) a successful advertising campaign linking beer consumption to lower cholesterol