The marginal propensity to consume represents
A) the level of consumption that occurs if disposable income is zero.
B) the ratio of total consumption to disposable income.
C) total income minus total taxes.
D) the change in output caused by a one-unit change in autonomous demand.
E) the change in consumption caused by a one-unit change in disposable income.
E
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If the nominal interest rate is 11 percent and the inflation rate is 9 percent, then the real interest rate is approximately
A) 2 percent. B) 20 percent. C) 4 percent. D) 18 percent.
Sweden's currency would tend to depreciate if:
a. Sweden's inflation rate rises relative to inflation in the rest of the world. b. the demand for imports by Swedes increases c. real interest rates in Sweden decrease relative to the rest of the world. d. all of the above
If the required reserve ratio decreases, the:
A. money multiplier increases. B. money multiplier decreases. C. amount of excess reserves the bank has decreases. D. money multiplier stays the same.
All of the following are most likely to be fixed costs EXCEPT the cost relating to
A. rent. B. insurance. C. taxes. D. packaging.