The advantage of a nominal anchor is that it prevents a limitless rise in the

Refer to Scenario 1-1. Had the firm not produced and sold the last 400 t-shirts, would its profit be higher or lower, and if so by how much?

A) Its profit would be $800 higher. B) Its profit would be $800 lower. C) Its profit would be $4,800 higher. D) Its profit would be $4,000 lower.

Given the equations for C, I, G, and NX below, what is the marginal propensity to save?

C = 1,000 + 0.8Y I = 1,500 G =1,250 NX = 100 A) 0.2 B) 0.8 C) 1.8 D) 10