The change in consumption spending divided by the change in disposable income provides the ______.
a. change in total consumption
b. marginal propensity to consume
c. total purchases from the multiplier effect
d. change in overall tax revenue
b. marginal propensity to consume
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Consider the stock of ocean tuna which is massively overfished. It is rational for an individual to exploit the resource rather than to conserve the stock because
A) the marginal private benefit of harvesting tuna is lower than the marginal social benefit of harvesting it. B) the marginal private cost of harvesting the fish is lower than the marginal social cost. C) the marginal social cost of harvesting the fish is lower than the marginal private cost. D) the marginal private benefit of harvesting tuna is higher than the marginal social benefit of harvesting it.
The money supply consists of:
A) currency plus reserves. B) currency plus required reserves. C) currency plus excess reserves. D) currency plus demand deposits.
An increase in the exchange rate for a currency will increase the demand for that currency
Indicate whether the statement is true or false
Most economists agree that fiscal policy:
A. should not be used to eliminate economic fluctuations, no matter how large or small. B. cannot be used to fine tune the economy. C. can be used to fine tune the economy. D. can be used to eliminate most if not all economic fluctuations.