The PIA is generated with a formula such that
A. high-income earners receive the same as low-income earners.
B. high-income earners receive less than low-income earners.
C. higher-income earners receive more money but a lower proportion of their AIME than lower-income.
D. higher-income earners receive the same proportion of AIMA as low-income earners.
Answer: C
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In the above figure, a change in quantity demanded with unchanged demand is represented by a movement from
A) point a to point e. B) point a to point b. C) point a to point c. D) None of the above represent a change in the quantity demanded with an unchanged demand.
Refer to Figure 4-3. If the market price is $2.50, what is the consumer surplus on the third ice cream cone?
A) $0 B) $0.50 C) $1.50 D) $2.50
If equilibrium income is $500 billion, MPC = 0.8, MPI = 0.2 and autonomous government spending increases by $20 billion, the new equilibrium income will be _____
a. $600 billion b. $550 billion c. $525 billion d. $520 billion e. $500 billion
The theory that nominal exchange rates are determined so that the law of one price holds is called:
A. the fixed-exchange-rate rule. B. purchasing power parity. C. the law of supply and demand. D. the equilibrium principle.