Aggregate expenditures are equal to ________.
A. C + I + G + NX
B. C + I + G + M
C. C + I + NX
D. I + G + NX
Answer: A
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Once marginal cost rises above the average cost,
a. Average costs will increase b. Average costs will decrease c. Average costs will stay the same d. None of the above
Which of the following observations is true of nontransaction deposits?
a. depositor can use them directly as a means of payment b. they do not pay any interest c. depositor cannot directly write checks against them d. they generally pay lower interest rates than transaction deposits
If the cross-price elasticity of demand between two goods is negative, then
a. the two goods are complements b. the two goods are substitutes c. as price of one good rises, the quantity demanded of the other good also rises d. one of the goods must be inferior e. the two goods are rarely used together by consumers
The marginal propensity to consume is
a. the change in income divided by the change in consumption b. consumption spending divided by income c. income divided by consumption spending d. the change in consumption divided by the change in income e. the change in consumption divided by income