If the consumption function is defined as C = 7,250 + 0.8Y, what is the marginal propensity to save?
A) 0.2
B) 0.8
C) 5.8
D) 7.25
A
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What is the difference between the terms "marketing" and "advertising"?
What will be an ideal response?
Firms will try to signal superior quality of their goods by:
A. advertising. B. making sales information available to the public and advertising. C. issuing warranties or guarantees. D. making sales information available to the public.
By definition, a direct expenditure offset will occur whenever
A) the interest rate falls. B) the interest rate rises. C) the government increases spending in an area that competes with the private sector. D) the government increases spending for the military.
Increases in the minimum wage are intended to raise the incomes of low-income workers. Many economists favor a different policy to achieve this goal, a policy that avoids the deadweight losses that result from the minimum wage
What is this policy? A) distribution of vouchers that can be used for rent or mortgage payments B) the earned income tax credit C) the Alternative Minimum Tax D) distribution of food stamps to low-income consumers