The larger the marginal propensity to save,
A) the smaller the multiplier.
B) the larger the multiplier.
C) the smaller the change in Real GDP, given a change in autonomous consumption.
D) a and c
E) none of the above
D
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Use the following table to answer the question below. Jake's Production Possibilities ScheduleJane's Production Possibilities SchedulePounds of Green BeansPounds of CornPounds of Green BeansPounds of Corn01600801012020602080404030406020400800Without trade, Jake consumes 20 pounds of green beans and 80 pounds of corn, and Jane consumes 40 pounds of green beans and 40 pounds of corn. If the terms of trade are 1 pound of green beans for 3 pounds of corn, and Jake sells Jane 72 pounds of corn, then the gains from trade for Jake are ________ pounds of green beans and ________ pounds of corn with trade and specialization.
A. 16, 32 B. 8, 4 C. 4, 8 D. 32, 16
If your income increases, what is the effect on your budget line?
What will be an ideal response?
Refer to Figure 3-2. An increase in the expected future price of the product would be represented by a movement from
A) A to B. B) B to A. C) S1 to S2. D) S2 to S1.
Each of the following is one of the four main categories of spending identified by John Maynard Keynes except
A) taxes. B) net exports. C) government purchases. D) consumption.