If a family's MPC is .7, it is:
a. Operating at the break-even point
b. Necessarily dissaving
c. Spending 70 percent of its income on consumer goods
d. Spending seven-tenths of any increment to its income
d. Spending seven-tenths of any increment to its income
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Managerial economics refers to the application of microeconomics to business decision making
Indicate whether the statement is true or false
If the economy is inflationary, the Fed would most likely:
a. encourage banks to provide loans by buying government securities. b. encourage banks to provide loans by raising the discount rate. c. encourage banks to provide loans by selling government securities. d. restrict bank lending by selling government securities. e. restrict bank lending by lowering the federal funds rate.
Nominal GDP measures the value of goods and services using current-year prices.
Answer the following statement true (T) or false (F)
Refer to the information provided in Table 21.1 below to answer the question(s) that follow. Table 21.1
Refer to Table 21.1. The value for net exports in billions of dollars is
A. 150. B. 250. C. 650. D. 800.