The marginal propensity to consume is equal to the slope of the consumption function
Indicate whether the statement is true or false
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When the Federal Reserve increases its target rate of inflation, it will set a ________ real interest rate at every inflation rate and the aggregate demand curve will ________.
A. higher; shift to the right B. lower; shift to the left C. higher; shift to the left D. lower; shift to the right
A point on the demand curve shows the
A) minimum price that people are willing to pay for another unit of a good. B) dollars' worth of other goods that people must sacrifice to consume another unit of the good. C) maximum price that people are willing to pay for another unit of a good. D) consumer surplus a person gains from consuming a unit of a good. E) marginal benefit minus the consumer surplus from consuming another unit of a good.
The four-firm concentration ratio for an industry is
a. the number of firms in the industry, divided by four. b. the share of industry output sold by the four largest firms in the industry. c. the percentage of total industry profits claimed by the four largest firms. d. the share of industry output sold by the fourth largest firm in the industry.
Which of the following is the best example of an investment in human capital?
a. an increase in the number of hours worked per week by a worker in an unskilled laboring job b. the purchase of company stock by a worker c. a summer internship at a law firm for someone going to law school d. payments into a retirement pension plan by a skilled laborer