Refer to the information provided in Table 22.2 below to answer the question(s) that follow. Table 22.2 PointAggregate Income (Y)Aggregate Consumption (C) A 10 14 B 20 23 C 30 25 D 40 26 E 50 34 F 60 39The data in the table was used to estimate the following consumption function: C = 12 + 0.4YRefer to Table 22.2. The error for point D is equal to
A. -2.
B. -1.
C. +2.
D. +4.
Answer: C
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According to the table above, ________ percent of total income is redistributed from the highest income group
A) 4.7 B) 2.3 C) 1.5 D) 3.8
If people speculate that a run on one bank will cause a run on all banks in the financial system, and this speculation proves accurate, then the financial system would experience what is known as a
A) securitization meltdown. B) commodity crisis. C) bank panic. D) institutional death spiral.
If nominal GDP is $10 trillion, and the money supply is $2 trillion, velocity is
A) 0.2. B) 5. C) 10. D) 20.
Albert Fishlow argued that if the railroads were built ahead of demand we would observe initial profit rates that were ______ and initial population densities near railroads that were _______
a. low; high. b. high; low. c. low; low. d. high; high.