Refer to the diagram. The movement down the production possibilities curve from point A to point E suggests that the production of:
A. computers, but not bicycles, is subject to increasing opportunity costs.
B. bicycles, but not computers, is subject to increasing opportunity costs.
C. both bicycles and computers is subject to constant opportunity costs.
D. both bicycles and computers is subject to increasing opportunity costs.
D. both bicycles and computers is subject to increasing opportunity costs.
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Different banks:
A. may offer loans at different rates. B. all offer loans at the same interest rate. C. are mandated to follow the Fed's set interest rate. D. never offer loans at exactly the same rates.
A decrease in autonomous investment of $100 million that occurs when the marginal propensity to save (MPS) equals 0.25 will lead to a decrease in real Gross Domestic Product (GDP) of
A. $40 million. B. $400 million. C. $25 mllion. D. $250 million.