The MPC indicates the fraction of
A. An additional dollar of disposable income that will be spent.
B. An additional dollar of disposable income that will be saved.
C. Total income that will be saved.
D. Total income that will be spent.
Answer: A
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A(n) __________ in exports by the United States results in a(n) __________ in the supply of foreign exchange
A) increase; increase B) decrease; increase C) increase; decrease D) None of the above.
Imposing a quota on metal softball bats shipped into the United States would likely:
a. increase the price of the bats but decrease the quantity of domestically made bats purchased in the United States. b. increase the price of the bats and the quantity of domestically made bats purchased in the United States c. leave the price of the bats unchanged but decrease the quantity purchased in the United States. d. leave both the price of bats and the quantity purchased in the United States unchanged.