Refer to the information provided in Figure 23.4 below to answer the question(s) that follow.
Figure 23.4Refer to Figure 23.4. The aggregate consumption functions C2 and C3
A. imply the same MPS.
B. have the same MPC.
C. differ in terms of the amount of consumption when income is zero.
D. all of the above.
Answer: C
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Why did the Bretton Woods system ultimately break down?
a. The refusal of OPEC countries to accept payment for oil in gold. b. The refusal of surplus countries to devalue as required by law. c. An inability to devalue the U.S. dollar despite chronic payments deficits. d. An inability to adequately measure balance of payments surpluses and deficits.
The equation of exchange is a formula indicating that the number of monetary units times
A. nominal Gross Domestic Product (GDP) is identical to the price level times the number of times each monetary unit is spent on final goods and services. B. real Gross Domestic Product (GDP) is identical to the price level times the number of times each monetary unit is spent on final goods and services. C. the number of times each monetary unit is spent on final goods and services is identical to the price level times real Gross Domestic Product (GDP). D. the price level is identical to the number of times each monetary unit is spent on final goods and services times real Gross Domestic Product (GDP).
The aggregate demand curve shows that at higher price levels the total quantity of output demanded is greater.
Answer the following statement true (T) or false (F)
Suppose a new employee is promised a pension payment of $8000 in the twenty-fourth year after joining the firm. The current pension contribution of $1200 a year. Assuming an eight percent rate of return, this pension plan is said to be
A) fully funded. B) partly funded. C) unfunded. D) fully vested.