The slope of the consumption function equals the marginal propensity to consume.
a. true
b. false
a. true
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Which broad field of economics would most likely study how consumers respond to a hike in cigarette taxes?
A. Microeconomics B. Marginal economics C. Macroeconomics D. Monetary economics
Assume a fixed demand for money curve and the Fed increases the money supply. The result is a temporary:
a. excess quantity of money demanded. b. excess quantity of money supplied. c. new equilibrium interest rate. d. decrease in the demand for loans.
The aggregate supply curves show how much a nation's businesses are willing and able to produce at each price level
a. True b. False Indicate whether the statement is true or false
When firms are faced with making strategic choices to maximize profit, economists typically use
a. the theory of monopoly to model their behavior. b. the theory of aggressive competition to model their behavior. c. game theory to model their behavior. d. cartel theory to model their behavior.