A.B. Denson Company had been employing 6 workers and 8 tons of raw materials, using 2,000 square feet of plant space. The firm increased its work force to 12 workers utilizing 16 tons of raw materials in a plant space increased to 4,000 square feet. Total number of units of output increased from 78 to 160 . What kind of returns to scale is the firm experiencing? Defend your answer

Describe how actual reserves are calculated. Explain the difference between required reserves and excess reserves. How do reserves affect the amount of loans a bank can make?

What will be an ideal response?

If the marginal propensity to save (MPS) is 0.5 and net exports falls by $100 million, then

A) real Gross Domestic Product (GDP) will increase by $100 million. B) real Gross Domestic Product (GDP) will fall by $200 million. C) real Gross Domestic Product (GDP) will not change. D) the effect on real Gross Domestic Product (GDP) cannot be determined from the given information.