How much is induced consumption at a disposable income of 3000?
600
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In the mainstream view, one major source of instability in the macro economy is the volatility of
A. investment spending. B. product prices. C. consumer spending. D. labor wages.
Steve owns a motorcycle valued at $5,000, and that is his only asset. There is a 5 percent chance that Steve will have an accident within a year. If he does have an accident, his motorcycle is worthless
Steve's utility of wealth curve is shown in the figure above. An insurance company agrees to pay Steve the full value of his motorcycle in case of an accident if he buys the company's insurance policy. The company's operating expenses are $500 per policy. With no insurance, Steve's expected wealth is A) $4,000. B) $4,500. C) $3,500. D) $5,000.
Goods that are rival in consumption, but not excludable are:
A. a common resource. B. a public good. C. an artificially scarce good. D. a private good.
Suppose Darrell has $4,000 in currency which he deposits in his bank. If the reserve ratio is 25 percent, this will lead to a maximum increase of ________ in M1 throughout all banks.
A. $0 B. $4,000 C. $6,000 D. $12,000