The marginal propensity to consume measures the ratio of the:
a. average amount of our income that we spend.
b. average amount of our savings that we spend.
c. change in consumer spending to a change in money holdings.
d. change in consumer spending to a change in interest rates.
e. change in consumer spending to a change in income.
e
Economics
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Banks deposit funds at the central bank, because:
a. They are needed for check clearing b. They need them there in order be able to purchase government securities. c. Actually, banks do not deposit funds at the central bank. They deposit them at the Treasury. d. All the above.
Economics
According to the theory of liquidity preference, the interest rate adjusts to balance the supply of, and demand for, loanable funds
a. True b. False Indicate whether the statement is true or false
Economics