The marginal propensity to consume is the
What will be an ideal response?
fraction of a change in disposable income spent on consumption expenditure.
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The share of research and development funding supported by the private sector has increased over the past three decades
a. True b. False Indicate whether the statement is true or false
The macroeconomic policy planner's job is made difficult because of
a. inaccurate multiplier estimates. b. timing problems. c. disagreements over potential GDP. d. uncertain forecasts. e. All of the above are correct.
If a company triples its output and its average cost decreases, then the firm is definitely experiencing
A) diseconomies of scale. B) decreasing marginal returns. C) increasing marginal returns. D) economies of scale. E) Both answers C and D are correct.
"Buy low and sell high is advice given to people who want to make a profit by buying and selling shares of stock. Arbitrage is defined as buying a product in one market at a low price and reselling it in another market at a high price
Therefore, when stock brokers buy and sell stocks to earn a profit they are engaging in arbitrage." Evaluate this statement; state whether it is true or false and explain your answer.