Refer to the above figure. If the MPC is unchanged and level of autonomous consumption increases, what occurs?
A. Line ABC will drop down.
B. Line EBD will shift up.
C. Line ABC shifts up.
D. Line EBD rotates and becomes steeper.
Answer: C
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Which of the following statements is correct about the relationship between the nominal interest rate and the real interest rate?
a. The real interest rate is the nominal interest rate times the rate of inflation. b. The real interest rate is the nominal interest rate minus the rate of inflation. c. The real interest rate is the nominal interest rate plus the rate of inflation. d. The real interest rate is the nominal interest rate divided by the rate of inflation.
Okun’s law refers to
a) The tendency for recessions in the USA to spread throughout the world b) The generally stable negative relationship between the output gap and deviations of unemployment from the natural rate c) The generally stable positive relationship between the output gap and deviations of unemployment from the natural rate d) The tendency for business cycle volatility to fall over time e) The negative relationship between unemployment and job vacancies
For barter exchange to take place,
a. there has to be a coincidence of wants. b. the products in question have to be divisible. c. money has to be used to put a value on the transaction. d. there has to be a single coincidence of wants. e. gold has to be one of the goods traded.
Refer to the following nonlinear model which relates W to P, Q, and R:W = aPbQcRdThe computer output form the regression analysis is: 
Based on the info above, the estimated value of a is
A. 2.66 B. 12.182 C. 0.916 D. 2.50