The aggregate consumption function is C = 1,200 + 0.4Yd. If income is $3,000 and net taxes are $400, consumption equals
A. 1,760.
B. 2,240.
C. 2,560.
D. 2,760.
Answer: B
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The growth of the Euromarkets resulted in
a. developing-country governments borrowing from European banks instead of American and Japanesebanks b. higher interest rates in Europe than in the U.S. and Japan c. a general trend toward substituting foreign aid for bank lending d. a general trend toward substituting bank lending for foreign aid e. none of the above
Which of the following statements about resource allocation is correct?
a. Within a firm, resources are allocated by prices; in the market, resources are allocated by the decisions of managers. b. Resources are allocated by prices both in the market and within the firm. c. Within a firm, resources are allocated by the decisions of managers; in the market, resources are allocated by prices. d. Resources are allocated by the decisions of managers both within the firm and in the market. e. In the market, resources are allocated either by prices or by the decisions of managers.
There are approximately ______ banks in the U.S
a. 8,000. b. 2,000. c. 100,000. d. 25,000. e. 4,000.
As a result of the war in Afghanistan, the population of Afghanistan as well as their capital stock was reduced. This can be illustrated by aggregate supply curve
a. shifting outward. b. becoming flatter. c. shifting inward. d. becoming more elastic.