If autonomous consumption rises, the TE curve shifts __________, the marginal propensity to consume __________, and the TP curve __________
A) upward; rises; shifts downward
B) upward; remains unchanged; remains unchanged
C) downward; rises; remains unchanged
D) upward; remains unchanged; shifts downward
E) none of the above
B
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Indicate whether the statement is true or false
As a result of OPEC ________ oil prices in 1973 and 1980, real GDP in United States ________
A) increasing; increased B) increasing; decreased C) decreasing; increased D) decreasing; decreased E) increasing; did not change
Producers typically face increasing marginal costs of production. Thus, their production possibilities frontier would
A) slope upward. B) bend inward. C) bend outward. D) appear as a straight line.
Which of the following statements is (are) correct? The equilibrium interest rate is the rate that
a. equates the supply of loanable funds with the demand for loanable funds b. equates new saving with investment plus the bond-financed government surplus c. equates private savings with investment d. All of the above e. None of the above