If Sara Thomas' disposable income increases from $4,000 to $4,500 and her level of saving increases from $200 to $300, it may be concluded that her marginal propensity to:
a. Consume is .75
b. Save is .30
c. Consume is .60
d. Consume is .80
d. Consume is .80
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How would a decrease in price of Blu-Ray movies affect the demand for Blu-Ray players?
A. Decrease the demand B. Increase the demand C. Increase in supply D. Increase in quantity demanded
Suppose there are two cities that have rent controlled apartments. In one city (Albany) all apartments are subject to rent control; in the other city (Halftrack) one-half of the apartments are rent controlled
Which of the following is most likely to be true? A) It will be impossible to rent an apartment in either city at any price. B) It will be difficult to find a rent-controlled apartment in Albany or Halftrack; rents for the Halftrack apartments not subject to controls will be higher than they would be without rent control. C) It will be easier to find an affordable apartment in Albany since rents will be low across the board. D) It will be easier to find an affordable apartment in Halftrack, either a rent-controlled apartment or another apartment, at a reasonable price.
The FE line
A) is horizontal. B) is vertical. C) slopes downward. D) slopes upward.
When deciding between domestic and foreign financial investments, investors typically consider
A) domestic and foreign inflation rates and expected changes in the exchange rate. B) domestic and foreign budget deficits. C) shifts in the relative demand for foreign and domestic goods. D) domestic and foreign interest rates and expected changes in the exchange rate.