The marginal propensity to consume is difficult to estimate because
a) it depends on expectations of future income
b) it depends on perceptions regarding the permanence of changes in income
c) it depends on credit and borrowing constraints
d) it declines as uncertainty increases
e) all of the above
e) all of the above
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Sheila's Sports Shop is a very popular sporting goods store, which has a yearly revenue of $600,000. Sheila runs the business herself
Her alternative employment options are to be a college swimming coach for $50,000 per year or a construction worker for $40,000 per year. Sheila spends $230,000 purchasing goods for resale to her customers. She also has four employees, who each earn $25,000 per year. Sheila owns the building that her Sports Shop is housed in and she could have rented it out for $20,000 per year. Sheila's costs for the resources that she supplies to the business equal A) $70,000 per year. B) $90,000 per year. C) $0 per year. D) $330,000 per year.
Evidence suggests that, with rare exceptions, economic policies are not manipulated in an effort to influence electoral outcomes. Use the Lucas critique to explain why not
What will be an ideal response?
The world price of a good is determined by the
A. demand for that good in the world market. B. country that produces the good. C. worldwide demand and supply of that good. D. supply of that good in the world market.
Which of the following allows the president of the United States to negotiate to eliminate unfair trade practices put in place by foreign governments?
A. The United Nations B. Tariff-quota requirements C. Section 301 of the Trade Act of 1974 D. The General Agreement on Tariffs and Trade