How much is induced consumption when disposable income is $600 billion?
A. 0
B. $200 billion
C. $300 billion
D. $400 billion
C. $300 billion
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The ________ of a coupon bond and the yield to maturity are inversely related
A) price B) par value C) maturity date D) term
If a one percent increase in the population leads to a five percent increase in the quantity sold, an economist would claim
A) the good is elastic with respect to population. B) the good is inelastic with respect to population. C) the good is a fad. D) consumers are misinformed about the quality of the product.
A positive temporary supply side shock will:
A. increase the price level in the long run. B. decrease the price level in the long run. C. increase the level of potential output in the long run. D. have no effect in the long run.
Refer to the above table. The table gives the combinations of real disposable income and real consumption for a college student for a year. What is the value of the average propensity to consume when real disposable income equals $400?
A. -0.45 B. 0.69 C. 1.45 D. 0.7