The marginal propensity to consume is assumed to be
A) greater than 1.
B) less than 1.
C) greater than 2.
D) less than 0.5.
B
You might also like to view...
Give the economic interpretation of each of the labeled areas: A, B, C, and D.
Use the following graph of the refined petroleum market to answer the questions below.
In the above figure, the economy is at point a on the initial supply of loanable funds curve SLF0. What happens if the real interest rate rises?
A) Nothing; the economy would remain at point a. B) There would be a movement to a point such as b on supply of loanable funds curve SLF0. C) The supply of loanable funds curve would shift rightward to a curve such as SLF2. D) The supply of loanable funds curve would shift leftward to a curve such as SLF1.
Using the growth accounting equation, if the growth rate of technology is 3%, the growth of labor is 2% and the growth of capital is 1% then if ?=0.25 then growth of output can be estimated to be:
A. 6.00%. B. 4.00%. C. 4.75%. D. 4.25%.
Which of the following statements is most correct?
A. Policymakers can shift the short-run aggregate supply curve B. Shifts in the monetary policy reaction function used to stabilize the economy shift the short-run aggregate supply curve. C. Policymakers can neutralize movements in aggregate demand. D. Policymakers can eliminate the effects of negative supply shock.