If consumption is defined as C = 1,350 + 0.6Y, then the marginal propensity to consume is 0.6
Indicate whether the statement is true or false
TRUE
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Which of the following statements is true about supply?
A. As price decreases, producers are willing and able to put more of the good on the market for sale. B. Supply refers to the amount of inventory that sellers have in their warehouses. C. As price increases, producers are willing and able to put more of the good on the market for sale. D. There is an inverse relationship between price and quantity supplied.
Loans are examples of a bank's
A) balance sheet. B) assets. C) liabilities. D) net worth.
The liquidity trap is often compared to:
A. pulling on a string. B. pushing on a string. C. pushing banks into a hole filled with liquid. D. pulling banks into a hole filled with liquid.
Recall the Application about the use of fertilizer and its impact on crop yields to answer the following question(s). The table is taken from this Application.
Bags of Fertilizer Bushels of Corn0851120213531444147Refer to the table above. After applying the second bag of fertilizer, the farmer experienced:
A. increasing returns. B. diminishing returns. C. constant returns. D. negative returns.