If national income = $2,000 . autonomous consumption = $100, the MPC = 0.80, and intended investment demand is $500, then actual investment will
a. equal intended investment, and the economy will be in equilibrium
b. be less than intended investment, and production and incomes will grow
c. be greater than intended investment, and production and incomes will fall
d. be less than intended investment, and production and incomes will fall
e. be greater than intended investment, and production and incomes will grow
B
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Asset prices in an economy are likely to fall if ________
A) firms' revenues rise B) labor supply falls C) labor demand increases D) investment falls
According to your textbook, which of the following best explains the fact that income inequality has increased in the U.S. since 1980?
A) The weakening of the labor union movement B) A reduction in economic growth C) A growing distrust of the efficacy of federal government spending programs combined with a rising concern over federal budget deficits D) A rise in the number of single-parent families at low income levels and a rise in two-parent two-earner families at higher income levels
In a closed economy, if Y and T remained the same, but G rose and C fell but by less than the rise in G, what would happen to public and national saving?
a. public and national saving would rise b. public and national saving would fall c. public saving would rise and national saving would fall d. public saving would fall and national saving would rise
Sometimes, public goods whose benefits are less than their costs still get produced because:
A. The marginal benefit is still larger than the marginal cost B. Of externalities in production C. The benefits accrue to politically powerful government officials and their constituents D. Of market failures