The slope of a graph with "income" on the horizontal axis and "saving" on the horizontal axis is +0.2. This means that if: (BOTH SAY HORIZONTAL)
A. Income is $100, then saving is $20
B. Income is 0.20, then saving is zero
C. Income increases by $100, then saving will rise by $20
D. Saving rises by $100, then income will rise by $20
Answer: C
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If the marginal propensity to consume (MPC) decreases, then
A) the marginal propensity to save (MPS) decreases. B) the multiplier decreases. C) the multiplier increases. D) MPC + MPS is less than 1.
Which of the following is most likely to be a fixed resource for the City Slicker's Dude Ranch?
a. the lodge where the guests stay b. food for the guests c. stable hands to take care of the horses d. hay for the horses e. water for the horses
The purchase of a virtual item from an online company with a virtual currency causes the nation's:
a. Monetary base to fall. b. M2 money supply to fall. c. M2 money multiplier to fall. d. Monetary base to remain the same.
Antitrust laws allow the government to
a. collect revenues through the antitrust tax. b. break up companies. c. purchase privately-held companies through eminent domain. d. All of the above are correct.