If MPC = 0.75 (and there are no income taxes but only lump-sum taxes) when T decreases by 100, then the IS curve for any given interest rate shifts to the right by:
What will be an ideal response?
300.
You might also like to view...
Is the minimum wage an example of a price floor or a price ceiling? Why?
What will be an ideal response?
When marginal cost is below average total cost:
a. total cost is falling. b. total cost is rising. c. average total cost is falling. d. average fixed cost is rising. e. total variable cost is falling.
Cross-price elasticity is represented by the formula ?Q/?P × P/Q; where Q and ?Q represent the quantity demanded and change in quantity demanded of a good, and P and ?P represent the price and change in price of a related good respectively
a. True b. False Indicate whether the statement is true or false
In the long run, a firm should exit the industry if its total costs exceed its total revenues
a. True b. False Indicate whether the statement is true or false