If total consumption spending is $1,000, the marginal propensity to consume is 0.6, and total output is $2,000, then the constant term is
A) $800.
B) $1,000.
C) $2,000.
D) $1,200.
A
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Economic growth
A) creates unemployment. B) has no opportunity cost. C) shifts the PPF outward. D) makes it more difficult for a nation to produce on its PPF.
If equilibrium is present in a market,
a. quantity demanded exceeds quantity supplied. b. quantity demanded equals quantity supplied. c. quantity supplied exceeds quantity demanded. d. the price of the product will tend to rise.
As a firm continues to produce additional output, which of the following will continue to decline as output expands?
A. opportunity costs B. average total costs C. average fixed costs D. marginal costs
If a lender desires to earn a real return of 3 percent on a loan and the anticipated rate of inflation is 2 percent, the lender should charge a
A. Real interest rate of 5 percent. B. Nominal interest rate of 3 percent. C. Real interest rate of 6 percent. D. Nominal interest rate of 5 percent.