Actual investment is $62 billion at an equilibrium output level of $620 billion in a private closed economy. The average propensity to save at this level of output is:

Which of the following is an example of unconventional monetary policy?

a. the Federal Reserve selling T-bills b. the Federal Reserve decreasing the discount rate c. the Federal Reserve purchasing mortgage-backed securities d. none of the above

Which of the following best describes the idea of excess capacity in monopolistic competition?

a. Firms produce more output than is socially desirable. b. The output produced by a typical firm is less than what would occur at the minimum point on its ATC curve. c. Due to product differentiation, firms choose output levels where price equals average total cost. d. Firms keep some surplus output on hand in case there is a shift in the demand for their product.