If the average propensity to consume is initially 0.85, the marginal propensity to consume is 0.75, and real disposable income increases by $1000, the value of saving
A. increases by $250.
B. decreases by $250.
C. increases by $150.
D. decreases by $150.
Answer: A
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If the quantity demanded exceeds the quantity supplied, then there is
A) a shortage and the price is below the equilibrium price. B) a shortage and the price is above the equilibrium price. C) a surplus and the price is below the equilibrium price. D) a surplus and the price is above the equilibrium price.
________ was established in 1998, and in 1999 it assumed the responsibility for monetary policy in the euro area.
A. The European Union B. The European Currency Board C. The European Central Bank D. The International Monetary Fund
Economists argue that unhindered international trade leads to an efficient outcome. What is meant by "an efficient outcome" in this context?
A) an outcome in which wages are roughly equal around the world B) an outcome in which the standard of living is roughly equal around the world C) an outcome in which an individual can choose to specialize in a certain line of work and be certain that he or she can make a living at that until retirement D) an outcome in which resources are devoted to their most efficient use
Services can be thought of as
A) unvalued goods. B) unwanted goods. C) free goods. D) intangible goods.