In an economy that has no foreign trade, if real GDP declines by $160 million following a decline in investment spending of $40 million, then the marginal propensity to consume must be equal to _____
a. 2
b. 0.33
c. 4
d. 0.75
e. 0.4
d
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Demand for staples such as dairy products and bread is likely to be both income and price inelastic
Indicate whether the statement is true or false
If you want to know the present value of $5,000 received in one year, and the interest rate is 2 percent, what formula can you use?
A) Present value equals 1.02 divided by $5,000. B) Present value equals $5,000 times 0.02. C) Present value equals $5,000 times 1.02. D) Present value equals $5,000 divided by 1.02
A Health Maintenance Organization is _____
a. a multi-doctor office b. a type of pre-paid health care c. a series of specialty hospitals d. increasingly rare
Which of the following would cause a short-run decrease in the quantity supplied of personal computers?
A) The price of CPUs decreases. B) The price of software decreases. C) The number of PC manufacturers decreases. D) The cost of manufacturing PCs decreases.