Because of the increasingly global market for loanable funds, crowding out may not cause a significant problem in some ________ countries. However, it can adversely affect economic growth in ________ countries.
A. developed; other developed
B. developing; developed
C. developed; developing
D. developing; other developing
Answer: C
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Cost-plus pricing
a. is used only in oligopolistic market structures b. simplifies pricing policy by adding a markup to average total cost c. in actual practice leads to markups which are greater for more elastic demand curves d. is likely to increase profits more than the use of marginal analysis e. requires the firm to project the amount which will be sold and then "mark-up" the price based on average variable cost
The change in consumption divided by a change in income is called the:
a. consumption function. b. marginal propensity to consume. c. marginal propensity to spend. d. spending function. e. changing propensity to consume.