In Macroland, autonomous consumption equals 100, the marginal propensity to consume equals 0.75, net taxes are fixed at 40, planned investment is fixed at 50, government purchases are fixed at 150, and net exports are fixed at 20. The slope of the expenditure line is:

The Coase theorem says that which of the following is necessary to lead to an efficient use of resources?

A) presence of transaction costs B) existence of property rights C) government intervention D) All of the above answers are correct.

Initially, the economy is at point G in Figure 10-4 above. An increase in per capita savings from s(0 ) to s(1 ) will in the short run result in ________ and in the long run result in ________

A) excess per capita saving; more rapid growth in per capita output B) excess per capita saving; less rapid growth in per capita output C) more rapid growth in per capita output; more rapid growth in per capita output D) more rapid growth in per capita output; no change in the long run rate of growth in per capita output