The change in consumption divided by a change in income is defined as
a. the marginal propensity to consume
b. autonomous consumption
c. the consumption function
d. Keynes's absolute income hypothesis
e. transitory consumption
A
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A manager believes there is a 10 percent chance their firm will have to pay $1,000,000 and a 90 percent chance they will be found innocent and pay nothing except the legal fees of $200,000. If the manager chooses to not settle for $300,000 and to enter the litigation instead, which of the following is true?
A) The manager is a risk lover. B) The manager is risk averse. C) The manager is risk neutral. D) The manager is risk intolerant.
Baumol and Blinder offer some reasons why countries trade with each other. List three of the reasons, and give an example of each to illustrate the reason
A pure monopolist should never produce in the:
A. elastic segment of its demand curve because it can increase total revenue and reduce total cost by lowering price. B. inelastic segment of its demand curve because it can increase total revenue and reduce total cost by increasing price. C. inelastic segment of its demand curve because it can always increase total revenue by more than it increases total cost by reducing price. D. segment of its demand curve where the price elasticity coefficient is greater than one.
Explain the general theory of the classical models comparing to Keynes theories
What would be an ideal response?