Refer to the above table. The table gives the combinations of real disposable income and real consumption for a college student for a year. What is the value of the average propensity to consume when real disposable income equals $14,000?
A) 0.91 B) 1.1 C) 0.09 D) 0.7
A
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Imagine that you borrow $5,000 for one year and at the end of the year you repay the $5,000 plus $600 of interest. If the inflation rate was 4%, what was the real interest rate you paid?
A) 16 percent B) 12 percent C) 8 percent D) 6 percent
Discuss the impact of the restoration of convertibility in 1958
What will be an ideal response?
Typically, economists expect oligopolistic behavior on the part of the firms when the four-firm concentration ratio is ______ or higher
a. 10 percent b. 25 percent c. 40 percent d. 60 percent e. 90 percent
When adjusting nominal GDP for price changes, it is preferable to use the GDP deflator rather than the consumer price index because
a. the GDP deflator is calculated for a narrow market basket of goods, approximating those items included in our measure of consumption expenditures. b. the GDP deflator calculates changes in the prices of items that more closely approximate those included in GDP. c. the GDP deflator is always less than the consumer price index, and therefore, it is a more stable index. d. the GDP deflator is the sum of the consumer price index and the wholesale price index.