Will MPC plus MPS always equal one? Explain why or why not
Yes, MPC plus MPS will always equal one. The reason is that there are only two things that an individual can do with income spend it or save it. As such, for each dollar of additional income, a certain percentage will be used for consumption and the remaining percentage will be devoted to saving.
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Refer to Table 9-11. If the actual terms of trade are 1 hat for 1.8 clocks and 150 hats are traded, how many hats will Belize gain compared to the "without trade" numbers?
A) -100 B) 0 C) 150 D) 250
Explain why the U.S. government might attempt to depress the exchange rate of the U.S. dollar.
What will be an ideal response?
The principle of voluntary exchange is the concept that a voluntary exchange between two people makes both people better off
Indicate whether the statement is true or false
Which of the following is not one of the three key services provided by the financial system to savers and borrowers?
A) risk sharing B) credit counseling C) liquidity D) information