If consumption is $750 when real disposable income is $1,000, the average propensity to consume is
A) 0.50.
B) 0.25.
C) 0.80.
D) 0.75.
D
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Holding other factors constant, if oil prices rise relative to the prices of other products, then the real wages of oil workers will ________ and employment of oil workers will ________.
A. decrease; not change B. decrease; increase C. increase; increase D. increase; decrease
Refer to the above table. The value of M1 is
A. $810 billion. B. $1,260 billion. C. $760 billion. D. $2,560 billion.
The Federal Reserve Banks sell government securities to the public. As a result, the checkable deposits:
A. of commercial banks are unchanged, but their reserves increase. B. and reserves of commercial banks both decrease. C. of commercial banks are unchanged, but their reserves decrease. D. and reserves of commercial banks are both unchanged.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point A necessarily represents
A. only hybrid cars being produced. B. an unattainable production point. C. what society wants. D. the economy's optimal production point.