With an MPS of 0.3, the MPC will be
A. 0.3 ? 1.
B. 1 ? 0.3.
C. 0.3.
D. 1/0.3.
Answer: B
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In Figure 10-5 above, suppose that the economy's steady-state point is C. At points to the left of this, steady-state investment ________ national saving, moving the economy ________ point C
A) exceeds, further away from B) exceeds, closer to C) falls short of, further away from D) falls short of, closer to
The portfolios that mutual funds offer to savers are
A) usually made up of bonds. B) usually made up of common stocks. C) tax free in most states. D) usually more liquid than the underlying assets.
For which of the following products would you expect the index of intra-industry trade to be lowest?
a. golf clubs b. automobiles c. whiskey d. natural gas
The Fed has which of the following as its strongest control over the money supply?
A. Interest rate changes B. The discount rate C. Open-market operations D. The required reserve rate