If the marginal propensity to save is 0.4 and disposable income increases from $1,000 to $1,500, saving will increase
A) $300. B) $200. C) $100. D) $400.
B
Economics
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Because people prefer name-brand pain-relieving drugs over store-brand pain-relieving drugs, demand curves do not slope downward for pain-relieving drugs
Indicate whether the statement is true or false
Economics
A price index
A. is the ratio of the price of a market basket in one year to the price of the market basket in the previous year times 100. B. is a mechanism to compare all prices in two different years. C. is a mechanism to compare all prices in two different years and the ratio of the price of a market basket in one year to the price of the market basket in the previous year times 100. D. is the ratio of the price of a market basket in one year to the price of the market basket in a base year times 100.
Economics