Data on after-tax income and consumption spending for the Adam Smith family are given below:After-tax IncomeConsumption Spending9,00015,40014,00018,40019,00021,40024,00024,400Based on these data, the Adam Smith family has a marginal propensity to consume equal to:
A. 0.9.
B. 0.75.
C. 0.6.
D. 0.8.
Answer: C
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Since 1980 U.S. net capital outflow has been
a. negative, meaning that foreigners were buying more capital assets from the United States than Americans were buying abroad. b. negative, meaning that Americans were buying more capital assets abroad than foreigners were buying from the United States. c. positive, meaning that foreigners were buying more capital assets from the United States than Americans were buying abroad. d. positive, meaning that Americans were buying more capital assets abroad than foreigners were buying from the United States.
The economist who won the Nobel Prize in Economics in 1995, and whose name is closely connected with rational expectations theory, is
A) Robert Solow. B) Paul Samuelson. C) Milton Friedman. D) Robert Lucas. E) John Maynard Keynes.
The classical economists believed that recessions were ____________.
Fill in the blank(s) with the appropriate word(s).
Status and ego considerations in consumption are economic explanations of demand.
Answer the following statement true (T) or false (F)