Tan is receiving a holiday bonus of $800. Her marginal propensity to consume is 0.4. How much of her bonus will she save?
a. $200
b. $320
c. $480
d. $600
c. $480
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Since 1970, the U.S. federal government had a budget surplus
A) in almost every year. B) in a few years in the 1990s. C) only once, in 2008. D) The U.S. federal government has not had a budget surplus since 1970.
Investments with _____ risk usually carry a _____ return
a. higher; lower b. lower; higher c. zero; high d. higher; higher
There are several reasons why demand curves may become more elastic. Among them are
a. the market becomes more monopolistic and cross elasticities approach zero b. the goods become less differentiated and more firms enter the industry c. consumers have fewer substitutes and firms drop out of the industry d. industry demand increases and consumers increase spending e. the existence of a natural monopoly and an increase in fixed costs
Unemployment benefits tend to be:
A. more generous in Europe, and this leads to fewer and shorter spells of unemployment. B. more generous in Europe, and this leads to more and longer spells of unemployment. C. less generous in Europe, and this leads to more and longer spells of unemployment. D. less generous in Europe, and this leads to fewer and shorter spells of unemployment.