If income in Austria decreases by 30 million euros and consumption decreases by 24 euros, then the MPC equals
a. 0.90.
b. 0.80.
c. 0.60
d. ?0.60.
b
You might also like to view...
Refer to Table 2-2. Assume Nadia's Neckware only produces ascots and bowties. A combination of 8 ascots and 18 bowties would appear
A) along Nadia's production possibilities frontier. B) inside Nadia's production possibilities frontier. C) outside Nadia's production possibilities frontier. D) at the horizontal intercept of Nadia's production possibilities frontier.
On a given morning, Franco sold 40 pairs of shoes for a total of $80 at his shoe store
a. The $80 is a real variable. The quantity of shoes is a nominal variable. b. The $80 is a nominal variable. The quantity of shoes is a real variable. c. Both the $80 and the quantity of shoes are nominal variables. d. Both the $80 and the quantity of shoes are real variables.
Unemployment insurance
a. reduces the hardship of unemployment, but it also increases the amount of unemployment. b. reduces the incentive for the unemployed to find and take new jobs. c. causes workers to be less likely to seek guarantees of job security when they negotiate with employers over the terms of employment. d. All of the above are correct.
Explain why countries that have volatile inflation rates are likely to have high nominal interest rates.
What will be an ideal response?