According to Figure 9.3, which of the following is true?
A. Consumption is $10 billion when disposable income is zero.
B. Dissaving occurs at disposable income levels above $20 billion.
C. At a disposable income level of $20 billion, consumption is zero.
D. The APC is greater than 1 at disposable income levels above $20 billion.
Answer: A
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In the year after the stock market crash of 1929, stock prices on average ___
a. were lower than they had been in decades b. were lower than in 1929 but higher than in the mid-1920s c. rebounded to a level higher than in 1929 d. cannot be reliably calculated because no buyers could be found for many stocks, and hence no prices were reported
Assume an equilibrium price of $7 and equilibrium quantity of 8 units at demand D and supply S2 in the graph shown. Total surplus is:
A. $32.
B. $12.
C. $56.
D. $16.
A bond purchaser is lending money to a corporation.
Answer the following statement true (T) or false (F)
In the U.S. a box of tea costs $5 . The same box of tea in Uganda costs 10,000 schillings (the currency of Uganda). If the real exchange rate is 5/4, what is the nominal exchange rate? Show your work