If Y = $500 billion, autonomous consumption = $400 billion, and the marginal propensity to save = 0.20, then saving will equal
a. –$300 billion
b. $300 billion
c. $0
d. $80 billion
e. –$80 billion
A
Economics
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Which of the following could be the price elasticity of demand for a good for which a decrease in price would increase revenue?
a. 0 b. 0.4 c. 1 d. 4
Economics
Refer to the diagram in which S is the before-tax supply curve and S t is the supply curve after an excise tax is imposed. The total tax payment to government is shown by area(s):
A. A only.
B. A + B + C + E + F.
C. A + B + C.
D. E + F.
Economics