If Nick consumes only two goods, oranges and plums, and he increases his consumption of oranges, then
a. the price of oranges must have increased
b. Nick's income must have increased
c. plums and oranges must be complements
d. he must reduce his consumption of plums to remain on the same indifference curve
e. Nick's MU/P of oranges will now increase
D
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You can capture a bigger piece of the pie if
a. You can decrease your counter party's gains from reaching an agreement b. You can increase you gain from reaching an agreement c. All of the above d. None of the above
If the APS is .1 and the MPC is .85, the APC is
A. .1. B. .15. C. .85. D. .9.
Which of the following would most likely suffer the least from the costs of inflation?
A) persons on fixed incomes B) persons whose incomes rise more rapidly than inflation C) firms that have to devote more time and labor to raising prices D) an investor that has to pay higher taxes because of the inflation
In Year 1, the cyclically adjusted budget showed a deficit of about $100 billion and the actual budget showed a deficit of $150 billion one year. In Year 2, the full employment budget showed a deficit of about $125 billion and the actual budget showed a deficit of $150 billion. Based on these data, what can be concluded about the direction of fiscal policy?
What will be an ideal response?