If income increased by $20,000 . investment spending is fixed at $5,000 . government purchases are fixed at $10,000 . net exports are fixed at $500, and aggregate expenditure increases by $15,000 . what is the marginal propensity to consume (MPC)?
a. 0.25
b. 0.75
c. 0.33
d. 0.50
e. 0.70
B
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Regulatory forbearance
A) meant delaying the closing of "zombie S&Ls" as their losses mounted during the 1980s. B) had the advantage of benefiting healthy S&Ls at the expense of "zombie S&Ls," as insolvent institutions lost deposits to health institutions. C) had the advantage of permitting many insolvent S&Ls the opportunity to return to profitability, saving the FSLIC billions of dollars. D) increased adverse selection dramatically.
Which of the following could lead to an increase in worker productivity?
a. A decrease in the physical capital stock b. An increase in the number of workers c. A war that destroys an enormous amount of plant and equipment d. An increase in the physical capital stock e. A decrease in the human capital stock