Assuming that investment, government expenditures, and net exports are all autonomous, the marginal propensity to consume for the economy represented in Figure 9.9 is

A. 0.25.
B. 1.0 since aggregate expenditure is a straight line.
C. 0.5.
D. Indeterminate since there is no consumption function.

Answer: C

Economics

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If the Fed wants to raise the interest rate, in the short run in the money market the Fed

A) increases the quantity of money. B) shifts the demand for money curve leftward. C) shifts the demand for money curve rightward. D) decreases the quantity of money. E) directly raises the interest rate and does nothing to either the supply of money or the demand for money.

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When a firm practices perfect price discrimination,

a. Consumer surplus is maximized b. Producer surplus is minimized c. Producer surplus is maximized d. None of the above

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