Explain what would happen to the equilibrium price and quantity of iPhones if the supply of iPhones increased while the demand for iPhones also increased
What will be an ideal response?
Equilibrium quantity would increase. Equilibrium price would depend on which change was larger. If the supply increase was larger than the demand increase, equilibrium price would decrease. If the demand increase was larger than the supply increase, equilibrium price would increase.
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The sum of the marginal propensity to consume (MPC) and the marginal propensity to save (MPS) always equals:
a. 1. b. 0. c. the interest rate. d. the marginal propensity to invest (MPI).
Government outlays consist of
a. all governmental purchases resulting from contracts with the private sector and foreign organizations b. government purchases, transfer payments, and interest on the national debt c. any purchase by an organization that is not trying to earn a profit d. government purchases and transfer payments minus the interest on the national debt e. total receipts from all organizations doing business with any level of government