The MPP of capital is defined as the
a. change in total output divided by the change in loanable funds
b. change in loanable funds divided by the change in total output
c. contribution of loanable funds to the final product
d. change in total cost attributed to employing one more unit of loanable funds
e. change in output generated by employing one more unit of loanable funds
E
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Land suitable for growing corn is usually suitable for growing soybeans. From the farmer's perspective, an increase in the price of corn will therefore tend to
A) decrease the demand for soybeans. B) increase the demand for soybeans. C) increase the supply (curve) of corn. D) raise the cost of growing soybeans. E) reduce the cost of growing soybeans.
Microeconomics is concerned with the study of
A) the effects of inflation. B) the effects of government spending. C) the effects on individual producers of higher wages paid to workers. D) aggregates.
If disposable income increases by $400 billion and consumption increases by $300 billion, the MPC equals
a. 0.75 b. 0.60 c. 0.80 d. 0.68
If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices. B. lower level of output and prices. C. higher level of output and prices. D. lower level of output at higher prices.