If the MPC is 0.9, then an increase in taxes of $100 can be expected to __________ consumption by the amount of __________

A) increase; $90
B) decrease; $90
C) increase; $100
D) decrease; $100


A

Economics

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Each seller's opportunity costs are:

A. determined monetarily, which is why they can never be zero. B. determined by a number of factors, none of which is monetary. C. determined by a number of factors, including monetary considerations. D. less than the monetary costs of manufacturing the good or service.

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An expansion of the money supply, ceteris paribus, will

a. raise interest rates b. reduce investment demand c. contract aggregate demand d. lower prices e. increase investment in the economy

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Gary is a tailor who creates custom-made business suits. His yearly total cost (TC) is $28,000. His average total cost (ATC) for the year is $400. How many business suits does Gary's business make in a year? a. 50 b. 20 c. 30 d. 70 e. none of the above d. 70 ATC: TC / ? units 400 = 28,000 / Q

a. 50 b. 20 c. 30 d. 70 e. none of the above

Economics

We would expect a cartel to achieve:

A. both allocative efficiency and productive efficiency. B. allocative efficiency but not productive efficiency. C. productive efficiency but not allocative efficiency. D. neither allocative efficiency nor productive efficiency.

Economics