The smaller the marginal propensity to save, other things constant, _____
a. the smaller the marginal propensity to consume
b. the smaller the multiplier
c. the flatter the consumption function
d. the steeper the consumption function
e. the steeper the saving function
d
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Which of the following is NOT a function of money? i. unit of account ii. store of value iii. unit of debt
A) i only B) ii only C) iii only D) both ii and iii E) both i and ii
Discrimination is usually not a profit-maximizing strategy
a. True b. False Indicate whether the statement is true or false
Suppose the factory Afro-Puffs Inc. produces wigs. As a by-product of this wig production, they also produce dangerous emissions of toxic gases (as a result of the strong glue used to hold the hair in place). The De-Lite car factory, down the road, experiences a negative externality from this production process. Suppose that the supply curve (private marginal costs) for the wig factory is X = (2/5)P - 2, and it faces a market demand of X d = 15 - P/2. The marginal damages caused by the production of wigs can be written as X = P - 1/2.
(a) Find the equilibrium price and quantity in the market for wigs. (b) Find the socially optimal level of wigs and the corresponding price. (c) How much should the wig factory be taxed per wig?
Checkable deposits are:
A. debts of commercial banks and savings institutions. B. credits of the federal government and government agencies. C. credits of commercial banks and savings institutions. D. debts of the federal government and government agencies.