According to Keynes, the primary determinant of Amy's saving is
A. the level of Amy's real current income.
B. the level of Amy's consumption spending.
C. the real interest rate.
D. the nominal interest rate.
Answer: A
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Refer to Exhibit 10-2. At M,
a. TP > TE. b. the relationship between TP and TE cannot be determined. c. TE > TP. d. TP = TE.
In most less developed countries, the initial target of import substitution is to promote domestic production of
(a) consumer goods. (b) food and other agricultural goods. (c) capital goods. (d) manufactured intermediate goods.
If there is a positive demand shock, which of the following would represent the most likely short and long-run outcomes? (Assume the economy was initially at full employment)
a. In the short run, real GDP and the price level would increase; in the long run, real GDP would return to its original level while the price level would rise even further. b. In the short run, real GDP and the price level would increase; in the long run, real GDP and the price level would return to their original level. c. In the short run, real GDP would increase and the price level would decrease; in the long run, real GDP would return to its original level while the price level would rise even further. d. In the short run, real GDP and the price level would decrease; in the long run, real GDP would return to its original level while the price level would rise even further. e. In the short run, real GDP and the price level would increase; in the long run, real GDP would increase while the price level would return to its original level.
The added revenue that a firm takes in when it increases output by one additional unit is ________ revenue.
A. variable B. marginal C. total D. fixed