Autonomous consumption spending is consumption spending
a. that is dependent on changes in income
b. on durable goods
c. that causes the MPC to rise
d. that is independent of the level of income
e. that causes the MPC to fall
D
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As the price of a product falls, the demand for the product increases, ceteris paribus
Indicate whether the statement is true or false
A country reports exports minus imports of $300 billion, net interest income of $30 billion, net transfers of $50 billion, and no change in official reserves. The country is a
A) net liability. B) net borrower. C) net lender. D) debtor nation. E) net asset.
Refer to the above figure. Suppose that the supply curve shifts from SA to SB while the demand curve remains at DA. Which of the following is TRUE?
A) Only quantity supplied has increased. B) Only quantity demanded has decreased. C) Supply has increased. D) Supply has decreased.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point A to Point E, the opportunity cost of motorcycles, measured in terms of hybrid cars
A. remains constant. B. decreases. C. initially increases, then decreases. D. increases.