If autonomous consumption is greater than zero and the marginal propensity to consume is greater than zero, but less than one, the consumption function will first be above and then below the 45 degree line
a. True
b. False
Indicate whether the statement is true or false
True
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In the figure above, the firm's economic
A) loss will be greater than $30 per day. B) loss will be $30 or less per day. C) profit will be between $0 and $30 per day. D) profit will be greater than $30.01 per day.
"Marginal cost eventually increases because of the law of diminishing returns." True or false? Explain
What will be an ideal response?
If the Federal Reserve buys $3 billion worth of Japanese yen and sells $5 billion of euros, how does this affect the balance of payments?
A) Falls by $2 billion B) Rises by $2 billion C) Rises by $3 billion D) Falls by $5 billion
If the price index last year was 1.0 and today it is 1.4, what is the inflation rate over this period?
A) -4% B) 1.4% C) 4% D) 40%