Suppose that when disposable income increases by $2,000, consumption spending increases by $1,500. Given this information, we know that the marginal propensity to consume (MPC) is

The effects of increased inflationary expectations is depicted in a(n)

a. upward shift in the investment curve b. downward shift in the investment curve c. upward shift in the consumption curve d. downward shift in the consumption curve e. move to the right along an existing consumption curve

Every time you go to the grocery store, you try to wait in the shortest line. But the lines always seem to be roughly the same length. Why?

A. The cashiers do not have an incentive to work faster. B. The cashiers work at the same speed. C. Other people are trying to choose the shortest line too. D. Random chance equalizes the length of the lines.