If the MPC of an economy is .90 and the economy has a horizontal aggregate supply curve, then an increase in investment spending of $50 million will increase total income by
a. $50 million.
b. more than $50 million but less than $500 million.
c. $500 million.
d. more than $500 million.
c
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Everything else equal, a depreciation of the dollar against the yuan:
A) will not affect the quantity of dollars demanded. B) will lead to a decrease in the quantity of dollars demanded. C) will lead to an increase in the quantity of dollars demanded. D) can either lead to an increase or a decrease in the quantity of dollars demanded depending on the magnitude of the depreciation.
When the demand for blue jeans increases, what happens next?
What will be an ideal response?
Of the following, pick the year the U.S. enjoyed a budget surplus
A) 1970 B) 1980 C) 1990 D) 2000 E) 2010
Identify three things which affect the choices households make with respect to how much labor to supply?
What will be an ideal response?