Consider the Keynesian consumption function. If disposable income is greater than the break-even level of disposable income, then households will be:
A. investing.
B. borrowing.
C. dissaving.
D. saving.
Answer: D
You might also like to view...
In the United States from 1949 to 2010, the vast majority of economic growth has been a result of the contribution from
A) capital. B) labor. C) total factor productivity. D) Capital, labor, and total factor productivity have contributed about equally to economic growth.
The money demand curve will shift when there is a change in the: a. unemployment rate
b. inflation rate. c. money supply. d. nominal interest rate. e. price level.
Which of the following statements is NOT true for a perfectly competitive firm?
A) A firm's demand curve is horizontal. B) The firm can influence its demand curve by advertising its product. C) The firm's demand curve is perfectly elastic. D) The market demand and supply curves determine the market price.
Refer to Scenario 16.1 below to answer the question(s) that follow. SCENARIO 16.1: The marginal benefit for a particular food is described by MB = 30 - q, where q refers to the quantity of the food. The marginal cost of producing the food is described by MC = 2q. There is a negative externality associated with food production and the marginal social cost of food production is MSC = 4q.Refer to Scenario 16.1. The competitive output level is ________ and the competitive price is ________.
A. 10 units of food; $20 B. 4.29 units of food; $25.71 C. 6 units of food; $24 D. 0 units of food; $0