Which of the following increases the slope of the consumption function?
A) an increase in consumer wealth
B) a decrease in the value of consumer durables
C) an increase in consumer confidence
D) an increase in the marginal propensity to consume
D
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Compared to perfect competition, the consumer surplus in a monopoly
A) is lower because price is higher and output is lower. B) is unchanged because price and output are the same. C) is eliminated. D) is higher because price is higher and output is the same.
If variables with a multivariate normal distribution have covariances that equal zero, then
A) the correlation will most often be zero, but does not have to be. B) the variables are independent. C) you should use the ?2 distribution to calculate probabilities. D) the marginal distribution of each of the variables is no longer normal.