Given the equations for C, I, G, and NX below, what is the marginal propensity to save?
C = 1,000 + 0.8Y
I = 1,500
G =1,250
NX = 100
A) 0.2 B) 0.8 C) 1.8 D) 10
A
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If the exchange rate measured in euros per dollar increases, then
A) the dollar depreciates relative to the euro. B) the euro appreciates relative to the dollar. C) the euro depreciates relative to the dollar. D) neither currency appreciates or depreciates.
In the short run, a perfectly competitive firm is producing an output level where marginal cost equals $10, average total cost equals $7, and marginal revenue equals $9 . Which of the following statements is correct?
a. The firm is earning an economic profit which could be increased by raising output. b. The firm is earning an economic profit which could be increased by lowering output. c. The firm is maximizing its economic profit. d. The firm is suffering an economic loss which could be decreased by raising output. e. The firm is suffering an economic loss which could be decreased by lowering output.