In the short run,
a. spending determines income, but not the other way around
b. income determines spending, but not the other way around
c. spending determines the interest rate, but not the other way around
d. spending determines income, and income determines spending
e. spending determines the productivity, and productivity determines spending.
D
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Total planned expenditure (equals income) is 13,500, autonomous consumption expenditure is 600, the marginal propensity to consume is 0.8, government purchases are 2,700, taxes are 2,500 and planned investment spending is 2,900
Net exports is ________. A) 3,840 B) negative 1,500 C) negative 1,380 D) negative 1,340 E) 2,100
Pricing is made difficult by
A) firms having multiple products. B) concerns about the response of competitors. C) concerns about consumer linkages of price and quality. D) all of these choices make pricing difficult.