The figure above shows a nation's consumption function. If disposable income is $4 trillion, then the MPC is ________ and saving is ________
A) negative; positive
B) positive; positive
C) positive; zero
D) negative; negative
E) positive; negative
B
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What would shift the aggregate demand curve leftward year after year?
What will be an ideal response?
The federal funds rate is the interest rate that _______ charge(s) _______
A. banks; other banks B. the Fed; commercial banks C. banks; their best corporate customers D. banks; on federal student loans
A firm's basic goal is best described as
A) maximizing total revenue. B) maximizing sales. C) maximizing profit. D) minimizing total cost.
John is a 55-year-old male smoker, about 50 pounds overweight, who has high blood sugar and drinks to excess a couple of times each month. Because of adverse selection in health insurance,
A) John is less likely to buy health insurance than the average person, because the average person's policy premiums will be based on his risk, not the average risk. B) John is more likely to buy health insurance than the average person, because his policy premiums will be based on the average risk, not his personal risk. C) when John gets health insurance, he will be less likely to take care of himself. D) when John gets health insurance, he will be more likely to take care of himself. E) if John doesn't have health insurance already, he will not be able to get it.