An increase in the marginal propensity to consume (MPC) will cause the consumption function to become steeper
a. True
b. False
Indicate whether the statement is true or false
True
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The nominal tax rate refers to the actual taxes paid as a percentage of taxable income.
Answer the following statement true (T) or false (F)
Bank A holds $1 million in required reserves and the required reserve ratio is 9 percent. It follows that Bank A holds checkable deposit liabilities that total approximately
A) $111 million. B) $11.11 million. C) $90 million. D) $900 million.
Refer to the accompanying figure. An increase in supply is represented by a shift from:
A. curve C to curve D. B. curve B to curve A. C. curve A to curve B. D. curve C to curve B.
If real interest rates in the US are increasing faster than real interest rates in other countries, which of the following is most likely to occur?
a. the demand for dollars will decrease, and the value of the dollar will increase b. the demand for dollars will increase, and the value of the dollar will increase c. the supply of dollars will decrease, and the value of the dollar will increase d. the supply of dollars will increase, and the value of the dollar will increase e. the supply of dollars will increase, and the value of the dollar will decrease