Suppose disposable income increases from $5 trillion to $6 trillion. As a result, consumption expenditure increases from $4 trillion to ________. This result means the MPC equals ______.
What will be an ideal response?
$4.8 trillion; 0.80
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Export promotion is widely regarding by economists as a positive role for government policy makers to play because it is very effective at promoting economic growth
Indicate whether the statement is true or false
The ________ problem of discretionary policy arises because economic behavior is influenced by what firms and people expect the monetary authorities to do in the future
A) moral hazard B) time-inconsistency C) nominal-anchor D) rational-expectation
Everything else held constant, if a factor increases the demand for ________ goods relative to ________ goods, the domestic currency will appreciate
A) foreign; domestic B) foreign; foreign C) domestic; domestic D) domestic; foreign
Present value is:
A. how much a certain amount of money that will be obtained in the future is worth today. B. how much a certain amount of money that you have in the present will be worth in the future. C. the process of accumulation of additional interest paid on interest that has already been earned. D. how much a certain amount of money needs to be discounted to be meaningful.