The slope of the saving function is equal to the MPS
a. true
b. false
a. true
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Refer to Table 4-3. The table above lists the marginal cost of cowboy hats by The Waco Kid, a firm that specializes in producing western wear. If the price of cowboy hats decreases from $38 to $30
A) consumer surplus will rise by $6. B) the marginal cost of producing the third cowboy hat will fall to $30. C) producer surplus will rise from $8 to $24. D) producer surplus will fall from $22 to $6.
Under perfect price discrimination, consumer surplus
A) is less than zero. B) is greater than zero. C) equals zero. D) is maximized.
Aggregate expenditure includes final spending by households, businesses, and government on final goods and services
a. True b. False
Suppose the Northwestern Bank has excess reserves of $12,000 and outstanding checkable deposits of $125,000. If the reserve requirement is 20 percent, what are the bank's actual reserves?
A. $47,000 B. $37,000 C. $44,000 D. $25,000