A major Internet service provider decides to spend $70 million to purchase new server equipment. If the marginal propensity to consume is 0.8, the eventual change in GDP will be
a. $40 million.
b. $50 million.
c. $90 million.
d. $350 million.
e. $850 million.
d
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If the required reserve ratio decreases, the
The application of rational expectations to the permanent-income hypothesis implies that information contained in
A) only past income levels will determine permanent income. B) only past income levels will determine transitory income. C) only new changes in income that are unanticipated can change permanent income. D) only new changes in income that are anticipated can change permanent income.
Why doesn’t a perfectly competitive firm charge a price slightly higher than the industry price in order to earn extra profit?
What will be an ideal response?
In 2017 about 9% of personal income in the United States came from
A. transfer payments. B. property income. C. wages and salaries. D. profits.