When the price of one product falls,
A. consumers’ real income will increase.
B. consumers will buy less of that product.
C. consumers will not change their buying patterns.
D. consumers’ real income will decrease.
Answer: A
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Answer the following statements true (T) or false (F)
1. If the marginal propensity to consume were four-fifths, the size of the multiplier would be 5. 2. The multiplier is the reciprocal of the marginal propensity to consume. 3. The multiplier is the relationship between the initial change in aggregate expenditure and the resulting change in income. 4. The higher the propensity to save, the larger the size of the multiplier. 5. If planned investment increases by $20 billion, other things remaining the same, planned saving eventually will increase by $20 billion, regardless of the size of the multiplier.
Which of the following serves to protect a monopoly structure?
a. appearance of close substitute goods b. creation of technologies that serve to break down barriers to entry c. continuing exclusive access to resources required to produce the good d. easier access to resources required to produce the good e. diseconomies of scale
What is the future value of $800 one year from today if the interest rate is 7 percent?
a. $747.66 b. $756.00 c. $856.00 d. None of the above are correct to the nearest cent.
Here is how an open market purchase works: The Fed __________ government securities to (from) a commercial bank, which raises the bank's deposits at the __________ and increases the bank's __________
A) sells; Fed; reserves B) buys; Fed; reserves C) buys; Treasury; discount loans D) sells; Treasury; required reserve ratio E) buys; Fed; liabilities