Which of the following changes in disposable income would lead to the smallest increase in consumption?
a. a $20,000 increase in disposable income, if MPC equals 0.5
b. a $12,000 increase in disposable income, if MPC equals 0.75
c. a $15,000 increase in disposable income, if MPC equals 0.6
d. a $30,000 increase in disposable income, if MPC equals 0.25
d
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An economy in which a central authority makes most of the economic decisions is known as a
a. market economy. b. laissez-faire economy. c. command economy. d. traditional economy.
A public museum is an example of a
A) government-sponsored good. B) public good. C) good which generates a positive externality. D) good which generates a negative externality.
If a poor country is going to grow rapidly and achieve a high level of per capita income, which of the following is most important?
What will be an ideal response?
The Monetary Control Act of 1980:
A. extended the Fed's authority to impose required-reserve ratios on all depository institutions. B. excluded the required-reserve ratios as an instrument of short-term policy. C. provided the Fed with the authority to use open market operations. D. closed or sold ailing savings and loan institutions.