The average propensity to consume is
A. real consumption expenditures divided by real disposable income.
B. real disposable income divided by real consumption expenditures.
C. real saving divided by real consumption expenditures.
D. real consumption expenditures divided by real saving.
Answer: A
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Which of the following shocks could trigger an expansion?
a. A large cut-back in military spending. b. A large increase in the price of oil. c. A sudden decrease in consumption. d. A large military buildup. e. A sudden decrease in investment.
Briefly describe the historical background that gave rise to antitrust and regulation in the United States
What will be an ideal response?
An decrease in Italy's interest rate and an decrease in Italy's price level relative to U.S. price level have the same effect on the exchange rate between the two countries.
Answer the following statement true (T) or false (F)
Assuming that C = $4,500, I = $1,000, G = $1,200, Exports = $450, Imports = $550, Depreciation = $600, and Indirect Business Taxes = $500 (all in billions of dollars), GDP equals:
A) $5,500 billion. B) $6,000 billion. C) $6,400 billion. D) $6,600 billion.