If a household's income rises from $46,000 to $46,700 and its consumption spending rises from $35,800 to $36,400, then its:
a. marginal propensity to consume is 0.86.
b. marginal propensity to consume is 0.99.
c. marginal propensity to consume is 0.98.
d. marginal propensity to save is 0.01

A system in which the factors of production are owned by private citizens

a. command economy b. traditional economy c. capitalism d. free enterprise economy

As the economy enters a strong expansion in which real GDP increases, which of the following occurs?

A) The demand for money decreases and there is a movement upward along the demand for money curve. B) The demand for money increases and there is a movement downward along the demand for money curve. C) The demand for money curve shifts rightward. D) The nominal interest rate falls as the demand for money curve shifts leftward. E) The demand for money curve shifts leftward.