How much is induced consumption when disposable income is $4 trillion?
$2 trillion
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Prices that maximize the public interest will always allow reasonable profits for firms
a. True b. False Indicate whether the statement is true or false
Firms that maximize sales always produce more than profit-maximizing firms
a. True b. False Indicate whether the statement is true or false
If the government removes a $1 tax on sellers of gasoline and imposes the same $1 tax on buyers of gasoline, then the price paid by buyers will
a. increase, and the price received by sellers will increase. b. increase, and the price received by sellers will not change. c. not change, and the price received by sellers will increase. d. not change, and the price received by sellers will not change.
The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.