Suppose that disposable income is $1,000 consumption is $700 and the MPC is 0.6. If the disposable income increases by $100, consumption and savings will equal which of the following?
A) $420/$280
B) $600/$400
C) $660/$320
D) $660/$440
E) $760/$340
Ans: E) $760/$340
Economics
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What country is given credit for the birth of the Eurodollar market?
A) the United States B) England C) the Soviet Union D) Japan
Economics
Assume the graph shown represents the market for bottles of wine and was originally in equilibrium with D and S. Something changes and demand shifts to D2. Which of the following is true?
A. Equilibrium price increased by $5.
B. Equilibrium quantity increased by 20.
C. Equilibrium price increased by $15.
D. Equilibrium quantity increased by 30.
AACSB: Analytical Thinking
Economics