The marginal propensity to consume is calculated by dividing the change in consumer spending by the change in disposable income
a. True
b. False
Indicate whether the statement is true or false
True
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The foreign holdings of U.S. dollars
a. reduce the living standards of Americans. b. are not included in the M1 money supply. c. account for approximately half of all U.S. currency issued by the Fed. d. are hard to explain since the dollar is not legal tender outside the United States.
If a firm stops production, then its:
A. total costs may increase or decrease. B. variable costs drop to zero. C. fixed costs rise. D. All of these are true.
What currency was the base, or center, currency in the ERM used in Europe during the 1980s and 1990s?
A) the French franc B) the British pound C) the German mark D) the Italian lira
Recall the Application about running a software programming business to answer the following question(s).If you have $10,000 to start a software development business, the interest rate is 4 percent, your cost of your computer is $5,000, and the earnings you sacrifice from working at another job are $32,000, your yearly cost of doing business would be:
A. $47,000. B. $47,400. C. $37,400. D. $37,000.