When the marginal propensity to consume (MPC) increases
A) the average propensity to save remains unchanged.
B) the multiplier remains unchanged.
C) the multiplier decreases.
D) the multiplier increases.
D
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The idea that a government budget deficit decreases investment is called
A) government dissaving. B) the crowding-out effect. C) the Ricardo-Barro effect. D) the capital investment effect.
Investment demand is downward sloping because
A) an increase in investment demand causes interest rates to fall. B) at lower interest rates, firms will undertake more investment. C) at lower interest rates, firms will undertake less investment. D) none of the above.
Product-specific services are most likely to be valuable for which of the following goods?
A) a broom B) a lawn tractor C) a shovel D) a lawn rake
The table accompanying lists the joint distribution of unemployment in the United States in 2001 by demographic characteristics (race and gender)
Joint Distribution of Unemployment by Demographic Characteristics, United States, 2001 White (Y = 0) Black and Other (Y = 1) Total Age 16-19 (X = 0) 0.13 0.05 0.18 Age 20 and above (X = 1) 0.60 0.22 0.82 Total 0.73 0.27 1.00 (a) What is the percentage of unemployed white teenagers? (b) Calculate the conditional distribution for the categories "white" and "black and other." (c) Given your answer in the previous question, how do you reconcile this fact with the probability to be 60% of finding an unemployed adult white person, and only 22% for the category "black and other." What will be an ideal response?