The relationship between the marginal propensity to consume and the marginal propensity to save is such that
a. MPC – MPS = 0.
b. MPC + MPS = 1.
c. MPC – MPS = 1.
d. MPC = 1/MPS.
b. MPC + MPS = 1.
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The majority of banks in the United States are
a. federally chartered and members of the Fed b. state-chartered banks and members of the Fed c. savings institutions d. state-chartered banks and not members of the Fed e. state-chartered credit unions
We can estimate that if a country grows at 7 percent per year, it will double its real GDP per capita in:
A. 2 years. B. 20 years. C. 35 years. D. 10 years.
Whenever there is a shortage at a particular price, the quantity sold at that price will equal: a. the quantity demanded at that price
b. the quantity supplied minus the quantity demanded. c. the quantity supplied at that price. d. (quantity demanded plus quantity supplied)/2.
If a household has $40,000 in taxable income and its tax liability is $20,000, the household's average tax rate is
a. 10 percent. b. 25 percent. c. 40 percent. d. 50 percent