Based on our understanding of consumption and saving, we know that the marginal propensity to consume and the marginal propensity to save must
A) be equal to each other.
B) sum to exactly one.
C) sum to less than one.
D) sum to more than one.
E) be equal to the multiplier.
B
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Refer to Table 9-11. Which country has an absolute advantage in producing hats?
A) Belize B) Denmark C) both countries D) neither country
A supply curve that is parallel to the price axis is
A) perfectly elastic. B) perfectly inelastic. C) relatively inelastic. D) unitary elastic.
If the United States increased its budget deficit, and it is at or near full employment, the most likely effect is to crowd
A. in investment and crowd out net exports. B. out investment and crowd in net exports. C. in investment and crowd in net exports. D. out investment and crowd out net exports.
14) In the figure above, point E could be obtained if A) resources were shifted from education to healthcare. B) resources were used more efficiently. C) there was an increase in society’s resources. D) resources were shifted from healthcare to education.