Refer to Exhibit 10-8. The marginal propensity to save (MPS) is
a. 4.00.
b. 0.25.
c. 0.10.
d. 0.90.
e. 0.75.
Ans: c. 0.10.
You might also like to view...
The unemployment of some groups, such as low-skill workers, may increase as a result of the imposition of a minimum wage.
Answer the following statement true (T) or false (F)
If you pay a constant percentage of your taxable income in taxes, the tax is
A) regressive. B) random. C) proportional. D) progressive.
The finance of government spending through a Treasury sale of bonds which are then purchased by the Fed
A) causes both reserves and the monetary base to rise. B) causes both reserves and the monetary base to decline. C) causes reserves to rise, but the monetary base to decline. D) has no net effect on the monetary base.
Suppose two economists disagree about who would be helped or hurt by certain legislation. These disagreements
a. are positive in nature b. are minor and rarely lead to different policies or conclusions c. are normative in nature d. occur as the result of a mistake made by an economist e. occur because economic models are more complex, and subject to error, than the real world