Refer to the information provided in Figure 23.3 below to answer the question(s) that follow.
Figure 23.3Refer to Figure 23.3. The equation for the aggregate consumption function is
A. C = 60 + 0.7Y.
B. C = 140 + 0.5Y.
C. C = 60 + 0.4Y.
D. C = 80 + 0.6Y.
Answer: A
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In reality, because few markets are perfectly competitive, some loss of economic efficiency occurs in the market for nearly every good or service
Indicate whether the statement is true or false
A decrease in money supply causes the real interest rate to ________ and the price level to ________ in general equilibrium
A) rise; rise B) remain unchanged; fall C) remain unchanged; rise D) fall; fall
Suppose that consumer income decreases and that hamburger is an inferior good. Which of the following will occur in the market for hamburger?
A) Market clearing price will rise, and equilibrium quantity will rise. B) Market clearing price will fall, and equilibrium quantity will fall. C) Market clearing price will rise, and equilibrium quantity will fall. D) Market clearing price will fall, and equilibrium quantity will rise.
Which of the following is a significant change in public policy in the U.S. since the 1980s?
A. Significant decrease in property tax rates B. Decline in tax rates on capital gains C. Increase in tax rates on carried interests D. Significant increase in inheritance tax rates