Here is a consumption function: C = C0 + MPC(Yd). If C0 = $300, then we know that
A) if Yd rises by $1, then Co rises by $1.
B) if Yd rises by $1, then C rises by $300.
C) as C0 rises by $15, C rises by $15.
D) as C0 rises by $15, Yd rises by $15.
C
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Which of the following reforms would reduce the likelihood of a future financial crisis?
a. increased regulations that would make it more difficult for lenders to foreclose on borrowers who are delinquent on mortgage payments b. expansion of government-sponsored lending in order to make loanable funds more readily available to sub-prime borrowers c. institutional changes that would strengthen the property rights of shareholders and provide financial managers with a stronger incentive to pursue long-run objectives d. frequent regulatory changes in order to search for and find the combination that would be most effective
The nominal exchange rate is about 2 Aruban florin per dollar. If a basket of goods in the United States costs $40, how many florins must a basket of goods in Aruba cost for purchasing-power parity to hold?
a. 20 florin b. 40 florin c. 60 florin d. 80 florin
Georgie’s country is working to increase its economic growth rate by providing incentives for companies to build new factories. Georgie’s country is focused on increasing economic growth by improving its ______.
a. natural resources b. human capital c. physical capital d. technology
The rate of change in total utility equals
A) marginal utility. B) the change in marginal utility associated with eating all the quantities a person can handle. C) the change in marginal utility divided by the change in quantity. D) the rate of change in marginal utility divided by the price.