By the permanent-income hypothesis, the MPC of transitory income is
A) k.
B) j.
C) kj.
D) k - j.
E) 0.
E
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As opposed to earlier crises, in the economic crisis of 2008-2009, the initial inability to pay came from
a. lending institutions. b. firms and individuals. c. states. d. the U.S. federal government.
A single price monopoly that faces the demand curve P = 10 - Q and profit maximizes by reducing price from $6 to $5 must have a marginal cost of 
A. 10. B. 6. C. 1. D. 5.
Of the total M1, currency accounts for a little more than _____%.
A. 20 B. 30 C. 40 D. 50
Interest rates perform the function of
A) signaling information about the inflation rate. B) allocating funds, but only in the consumer sector. C) allocating funds, which determines the allocation of physical capital. D) rewarding those who save but has no direct allocative role.