If income increases from $110,000 to $120,000 and consumption from $108,000 to $114,000 . the marginal propensity to consume is:

An increase in ________ decreases the quantity of money people want to hold

A) the price level B) real GDP C) the interest rate D) the quantity of money

Suppose two Cournot duopolist firms operate at zero marginal cost. The market demand is p = a - bQ. Firm 1's best-response function is

A) q1 = (a - bq2 )/2b. B) q1 = (a - 2bq2 )/2b. C) q1 = a/b. D) q1 = a/2b.