The consumption function is the relationship between ________, other things remaining the same
A) consumption expenditure and net taxes
B) net taxes and disposable income
C) consumption expenditure and the price level
D) consumption expenditure and disposable income
E) consumption expenditure and saving
D
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and net nonreserve international borrowing/investing in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises and net nonreserve international borrowing/investing becomes more positive (or less negative). b. The real risk-free interest rate falls and net nonreserve international borrowing/investing becomes more negative (or less positive). c. The real risk-free interest rate rises and net nonreserve international borrowing/investing becomes more negative (or less positive). d. The real risk-free interest rate and net nonreserve international borrowing/investing remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Market demand schedule
What will be an ideal response?
The market demand for a monopoly firm is estimated to be:Qd = 100,000 - 500P + 2M + 500PRwhere Qd is quantity demanded, P is price, M is income, and PR is the price of a related good. The manager has forecasted the values of M and PR will be $50,000 and $20, respectively, in 2016. The average variable cost function is estimated to beAVC = 520 - 0.03Q + 0.000001Q2Total fixed cost in 2016 is expected to be $4 million. The estimated marginal cost function is
A. SMC = 260 - 0.03Q + 0.000015Q2. B. SMC = 260 - 0.015Q + 0.000005Q2. C. SMC = 520 - 0.06Q + 0.000003Q2. D. SMC = 520 - 0.03Q + 0.000002Q2. E. none of the above