The marginal propensity to consume domestic goods is the
A. MPC - MPM.
B. MPC - MPS.
C. MPC + MPM.
D. MPC + MPS.
Answer: A
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In the foreign exchange market, how does the quantity of U.S. dollars demanded respond to a change in the U.S. exchange rate? Why is there this response?
What will be an ideal response?
If households spend $0.75 of each additional dollar of increased income, the expenditure multiplier will be
A) 1.33. B) 4. C) 5. D) 7.5.
The demand for money that households keep for emergency purposes is known as the:
a. emergency demand. b. temporary demand. c. precautionary demand. d. speculative demand.
Which of the following are residents of rich countries likely to have in greater quantities, or better quality, than residents of poor countries?
a. housing b. healthcare c. life expectancy d. All of the above.