If the marginal propensity to consume (MPC) is 0.75 and there is an increase in planned investment spending of $0.5 trillion, then saving will
A) increase by $0.25 trillion. B) increase by $0.5 trillion.
C) increase by $1 trillion. D) remain unchanged.
B
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Marginal analysis examines the effects of additions to or subtractions from a current situation
a. True b. False Indicate whether the statement is true or false
Of the 39 million Americans living in poverty, _______________ are children.
A. one-quarter B. 10 percent C. less than half D. more than half
The dictator of a country requires that companies planning to open or expand must pay a large fee to file an application one year prior to building new factories or expanding existing ones. Other things the same, in the long run this requirement would
a. reduce real GDP per person and productivity. b. reduce real GDP per person but not productivity. c. reduce productivity but not real GDP per person. d. None of the above is correct.
Refer to the above table. In a choice between education and public safety:
What will be an ideal response?