A firm practicing group price discrimination across two countries sets MR = common MC and therefore
A) price will be the same in both countries.
B) price will be twice MR.
C) profit will be the same in both countries.
D) price will likely be different in each country.
D
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If the marginal propensity to save (MPS) increases, the multiplier
A) decreases. B) can either increase or decrease, depending on what happens to the marginal propensity to consume (MPC). C) increases. D) stays the same.
A risk averse person's utility of wealth curve has a
A) positive slope and becomes steeper to the right. B) positive slope and becomes flatter to the right. C) negative slope and becomes steeper to the right. D) negative slope and becomes flatter to the right.
If the marginal propensity to consume is 0.75, the marginal propensity to save is
A) 0.25. B) 0.5. C) 1. D) 3.
If expectations are formed rationally and wages are flexible, the aggregate supply curve is
A) upward sloping. B) horizontal. C) vertical. D) relatively flat.