The fraction of a change in disposable income that is spent on consumption is the
A) marginal propensity to consume.
B) marginal dissaving ratio.
C) expected future disposable income.
D) marginal buying power of money.
E) marginal propensity to dissave.
A
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When its marginal cost increases, a firm aiming at maximizing net revenue
A) can always raise its price, but only by the amount of the cost increase. B) can often raise its price by more than the cost increase. C) can raise its price, but always by less than the cost increase. D) may not be able to raise its price at all.
Exhibit 19-4 Balance sheet of Tucker National Bank Assets Liabilities Required reserves$ 4,000 Checkable deposits$20,000 Excess reserves16,000 Loans 0 Total$20,000 Total$20,000 The required reserve ratio in Exhibit 19-4 is:
A. 5 percent. B. 10 percent. C. 15 percent. D. 20 percent.