If the average propensity to save (APS) is 0.40, then this means
A. people are spending 40 percent of their disposable income.
B. people are spending 60 percent of their amount of saving.
C. people are saving 40 percent of their amount of consumption.
D. people are saving 40 percent of their disposable income.
Answer: D
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Which of the following is most commonly used to monitor short-run changes in economic activity?
a. the inflation rate. b. real GDP. c. interest rates. d. value of the U.S. dollar in the foreign exchange market.
In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices. B. lower prices. C. lower output. D. None of these is true.
What are the private costs of driving an automobile? What are the external costs?
What will be an ideal response?
Select the phrase that correctly completes the following statement. "A decrease in the number of manufacturers caused a decrease in the supply of sailboats. As a result
A) the price of sailboats increased and the demand for sailboats decreased." B) the equilibrium quantity of sailboats increased." C) the price of sailboats increased and the quantity of sailboats demanded decreased." D) the price of sailboats increased. The higher price caused the supply of sailboats to increase."