Suppose that John allocates $10,000 of his disposable income for necessities. Any additional income beyond that is both spent and saved. Assume he has a disposable annual income of $50,000 and an MPC=0.8. Based on this information the additional amount spent on non-necessities should be:

Assume an economy with a single bank, no excess reserves, no savings accounts, and no currency held by the public. With a required reserve ratio of .4, the demand deposit expansion multiplier is

A) 20. B) 10. C) 4. D) 2.5.

The total costs of using a resource are made up of

A) private costs only. B) external costs only. C) social costs only. D) internal and private costs only.