Suppose that when disposable income increases by $1,000, consumption spending increases by $750. Given this information, we know that the marginal propensity to save (MPS) is
A. 1.33.
B. 4.
C. 0.75.
D. 0.25.
Answer: D
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The cross elasticity of demand between apples and oranges is defined as the
A) percentage change in the quantity of apples demanded divided by the percentage change in the price of oranges. B) price elasticity of demand for apples divided by the price elasticity of demand for oranges. C) percentage change in the quantity of apples demanded divided by the percentage change in the quantity of oranges demanded. D) change in the quantity of apples demanded divided by the change in the quantity of oranges demanded.
Producing where marginal revenue equals marginal cost is equivalent to producing where
A) total revenue is equal to total cost. B) total profit is maximized. C) average fixed cost is minimized. D) average total cost equals average revenue.
The parties to a swap are formally called the
A) counterparties. B) optioners. C) short and long positions. D) bond- and billholders.
In 2016, interest payments on the national debt accounted for almost _____ of federal outlays
a. 7 percent b. 25 percent c. 14 percent d. 52 percent e. 40 percent