In the country of Marzipana, total consumption in Year 1 was $56,000 million and in Year 2 was $60,000 million. It has been observed that each time disposable income changes in this country by $100, consumption changes by $70 . Using this information compute the change in disposable income from Year 1 to Year 2
a. Disposable income increased by $2,800 million in Year 2.
b. Disposable income decreased by $2,000 million in Year 2.
c. Disposable income increased by $2,000 million in Year 2.
d. Disposable income increased by $4,500 million in Year 2.
e. Disposable income decreased by $2,600 million in Year 2.
a
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Suppose the government cuts taxes. We would expect interest rates to ________ and the dollar to ________ in foreign exchange markets
A) rise; depreciate B) fall; appreciate C) rise; appreciate D) fall; depreciate
Which of the following statements regarding the trucking industry is correct?
A) The recession of 2007 -2009 caused many trucking firms to exit with many firms filing for bankruptcy. B) The trucking industry most closely resembles an oligopoly. C) Even though there is a high degree of competition, firms in the trucking industry are able to sustain positive economic profits as a result of a substantial degree of product differentiation. D) The trucking industry was largely unaffected by the recession of 2007-2009 mainly because the industry is comprised by large firms with significant market power.