If the marginal propensity to consume is 0.75, then the value of the tax multiplier is

A rise in the real interest rate ________ consumption expenditure and ________

A) decreases; shifts the consumption function downward B) decreases; results in a movement downward along the consumption function C) decreases; shifts the consumption function upward D) increases; shifts the consumption function upward E) increases; shifts the consumption function downward

Competition is best characterized as

A) a fully regulated set of market activities. B) a fair and just set of outcomes. C) a process of bids and offers. D) a necessary evil.

Suppose the extra cost to a car wash of advertising one additional day each month on a local radio station is $175

Then, the car wash should advertize that one additional day each month if doing so brings in additional revenue of $175 or more each month. Indicate whether the statement is true or false

Consider Jen, a consumer with preferences U(H,F) = F1/3H2/3, where H is the quantity of housing and F is the quantity of food (per month)

Suppose Jen has a stipend of $600/month which she uses to purchase food at a price of $1/unit and housing at a price of $10/unit. a. Compute Jen's utility-maximizing bundle of goods. b. Suppose that Jen's employer subsidizes housing by paying 50% of her total housing costs, thereby effectively lowering the price Jen pays for housing to $5/unit. Compute Jen's new optimal consumption bundle. c. How much does Jen's employer pay in total for this subsidy? How much utility does Jen enjoy with this subsidy (compute her utility at the optimal bundle). d. Suppose that her employer simply gave Jen the dollar cost you found in (c) as a lump sum (instead of subsidizing housing). Will Jen gain a higher utility from the housing subsidy or the lump-sum equivalent transfer?