In an economy, for every $10 million increase in disposable income, saving increases by $2 million. It can be concluded that the
A. average propensity to save is 0.2.
B. marginal propensity to consume is 0.2.
C. slope of the saving schedule is 2.
D. slope of the consumption schedule is 0.8.
Answer: D
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To appreciate the U.S. dollar against the Mexican peso, in the foreign exchange market the Fed could ________ dollars and ________ pesos
A) buy; buy B) sell; sell C) sell; buy D) buy; sell E) None of the above answers is correct because the Fed cannot affect the U.S. exchange rate.
What did President George W. Bush and Mother Teresa have in common?
A) They each pursued projects in which they were interested. B) They each demonstrated a burning desire to directly serve the poorest of the poor. C) They each promoted a plan to build up the American nuclear defense system. D) They were both well-known fans of the Dallas Cowboys.
Which of the following is true for a profit-maximizing competitive firm in the long run but not a monopolist?
a. MC = MR b. MC = P c. AR = P d. Q > 0
Unions
a. do not affect the natural rate of unemployment. b. lower the wages of unionized workers. c. raise the profits of unionized firms. d. lower the wages of workers in industries without unions.