If we know that the slope of the consumption function is 0.6, then we know that if real disposable income increased by $1,000 billion, real consumption spending would
a. increase by $60 billion
b. increase by $1,000 billion
c. increase by $600 billion
d. increase by $6,000 billion
e. decrease by $6 billion
C
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Everything else held constant, when the government has higher budget deficits
A) the demand curve for bonds shifts to the left and the interest rate rises. B) the demand curve for bonds shifts to the left and the interest rate falls. C) the supply curve for bonds shifts to the right and the interest rate falls. D) the supply curve for bonds shifts to the right and the interest rate rises.
One way to solve the problems caused by information asymmetry is:
A. proofing. B. surfing. C. signaling. D. All of these are solutions to information asymmetry.
The higher the world price above the domestic no-trade equilibrium, the lesser the quantity of a good exported by a country
a. True b. False Indicate whether the statement is true or false
The price charged by this profit-maximizing firm is ___ and its output is ___ (assume marginal cost is MC1).
A. $45; 9
B. $45; 11
C. $65; 9
D. $65; 11