Thalia has a marginal propensity to save of 30 percent. What is her marginal propensity to consume?
a. 0 percent
b. 30 percent
c. 70 percent
d. unknown
c. 70 percent
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Kyle and Stan are playing Odds or Evens, where Kyle is designated as the "odd" player and Stan is designated as the "even" player. They decide to play the game 10 times. The mixed-strategy equilibrium in this zero-sum game occurs when
A) each player plays a pure strategy. B) one player plays a pure strategy and the other plays a mixed strategy. C) both players play their ideal mixtures. D) There is never an equilibrium in a zero-sum game.
The marginal benefit from a good is the amount a person is willing to pay for
A) all of the good the person consumes. B) one more unit of the good. C) all of the units of the good the person consumes divided by the number of units he or she purchases. D) one more unit of the good divided by the number of units purchased.
In the United States the underground economy has been valued at around:
A. 7 percent or 8 percent of GDP. B. 2 percent or 3 percent of GDP. C. 5 percent to 6 percent of GDP. D. 9 percent to 10 percent of GDP.
If the Fed were to change the reserve requirement in an effort to increase the money supply, they would:
A. increase the reserve requirement. B. decrease the reserve requirement. C. open the discount window longer. D. increase the discount rate.