If disposable income is $900 billion when the average propensity to consume is 0.8, it can be concluded that:
a. Consumption is $800 billion
b. The marginal propensity to save is 0.1
c. The marginal propensity to consume is 0.9
d. Saving is $180 billion
Ans: d. Saving is $180 billion
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A. South America B. Europe C. Asia D. Africa
Assume that each day ten thousand children watch Sesame Street on public television and that watching Sesame Street generates a benefit of $100 per child per year. Once a year, public television hold a pledge drive asking viewers to make voluntary contributions in order to keep the programming available to everyone. If public television stations collect less than $100 per child during the pledge drive, then this is evidence:
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A. seasonally B. frictionally C. cyclically D. structurally
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Answer the following statement true (T) or false (F)