Refer to the information provided in Figure 23.1 below to answer the question(s) that follow.
Figure 23.1Refer to Figure 23.1. A decrease in the MPS
A. makes the consumption function flatter.
B. shifts the consumption function upward.
C. makes the saving function flatter.
D. shifts the saving function downward.
Answer: C
You might also like to view...
Refer to the scenario above. Which of the following will happen if her husband quits his job to look after their son instead of Sarah?
A) The country's GDP will remain unchanged. B) The country's GDP will increase. C) The country's trade deficit will increase. D) The country's trade surplus will increase. Mike's housekeeper charges $30 for mowing his lawn.
An investment pays $100 at the end of each of the three next years. No additional payments will ever be made. If the annual interest rate is 5 percent, the present value of the investment is approximately
A) $250. B) $272. C) $288. D) $300.
Reserve requirements are highest for
A) transactions deposits. B) bank borrowings from foreign branches. C) federal funds. D) business time deposits.
In a perfectly competitive market, if P > ATC in the short run, there is apt to be
A) entry of new firms into the market. B) an accounting loss for existing firms. C) an inward shift in the industry supply curve. D) an upward pressure on price.