If the marginal propensity to consume is 0.60, the marginal propensity to save will be:
a. greater than 0.60.
b. equal to 0.40
c. equal to 0.60.
d. equal to 0.
b
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A very large number of small sellers who sell identical products imply
A) the inability of one seller to influence price. B) a multitude of vastly different selling prices. C) a downward sloping demand curve for each seller's product. D) chaos in the market.
This basic pattern emerges in the United States: financial institutions are more heavily regulated
A) the smaller is their typical contributor. B) the larger is their typical contributor. C) the riskier are their assets. D) the larger they are in total asset size.
Which component of aggregate demand is most impacted by the foreign trade effect?
a. investment spending b. consumption c. net exports d. government purchases
Since 1976 our merchandise balance of trade has been ____ and our services balance of trade has been _____.
A. positive; positive B. negative; negative C. negative; positive D. positive; negative