Sam buys gasoline and coffee each week. In order to draw his budget line between gasoline and coffee, Sam would have to know
A) only how much income he has available to spend on gasoline and coffee.
B) only the prices of one gallon of gasoline and one pound of coffee.
C) only how much gasoline he wants to buy and how much coffee he wants to drink.
D) both how much income he has to spend and the prices of one gallon of gasoline and one pound of coffee.
D
You might also like to view...
If a tax increase of $8 billion caused real GDP to decline by $32 billion, then the economy's MPC is
A. 0.5. B. 0.9. C. 0.6. D. 0.8.
Which of the following situations describing a resource allocation method most resembles the force method?
A) Seventy percent of Austin's chess club wanted to purchase new chess sets and thirty percent did not. The club purchased the sets. B) Lattes are sold at Starbucks. C) Food from the Weld County Food Bank is distributed to families in need. D) Mandy saved her allowance to buy a 12 pack of cream soda. When Mandy's brother saw the soda, he took four. E) Jose works at Intel. His manager tells him what work needs to be completed each month.
In the above figure, at an income level of Y1 and planned expenditures of (C + I)1, the level of autonomous investment is
A. EF. B. GK. C. ED. D. JK.
An increase in taxes (when Ricardian equivalence doesn't hold) causes the real interest rate to ________ and the price level to ________ in general equilibrium.
A. rise; rise B. rise; fall C. fall; rise D. fall; fall