Sometimes, when goods are produced and consumed, side effects are felt by people who are not directly involved in the market exchanges. In general, these side effects are called

A. Coase effects.
B. externalities.
C. public goods.
D. internalities.
E. none of the above

Answer: B

Economics

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If disposable income increases by $100 million, and consumption increases by $90 million, then the marginal propensity to consume is

A) 0.9. B) 0.8. C) 0.75. D) 0.6.

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An increase in government spending will force an appreciation of the dollar, which causes net exports to fall

Indicate whether the statement is true or false

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