If an individual’s income increases by $100, then their spending will increase by less than $100.
Answer the following statement true (T) or false (F)
True
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When you deposit $50 in currency at Old National Bank
A) its assets increase by less than $50 because of reserve requirements. B) its reserves increase by less than $50 because of reserve requirements. C) its liabilities increase by $50. D) its liabilities decrease by $50.
Which of the following is false about quantity discounts?
a. Quantity discounts are a form of price discrimination which allow a seller to charge a higher price for the first unit than for later units. b. Quantity discounts allow price discriminating producers to extract additional consumer surplus from customers. c. Price discrimination, such as offering quantity discounts, can result in a greater output, and thus greater consumer surplus and producer surplus, by a monopolist than if price discrimination was not possible. d. Quantity discounts benefit those customers who would not buy any of a monopolist's product at the price that the monopolist would charge if it could not price discriminate.
A . What is the income multiplier? b. How will the income multiplier change if the marginal propensity to save increases? Explain
If a "liberal" wanted to decrease aggregate demand, which of the following would she tend to favor?
a. An increase in government spending, because it will increase the size of the public sector. b. A decrease in government spending, because it keeps the public sector small. c. An increase in transfer payments, because it has a larger multiplier than tax changes. d. An increase in taxes, because it makes the public sector larger.