The nation’s disposable income increases by $400 billion and, as a result, consumer spending increases by $320 billion. Therefore, the MPC equals

A consumer's utility-maximizing combination of goods is given by the bundle that corresponds to the point on

A) an indifference curve that is tangent to the budget constraint. B) the budget constraint where it intersects one of the axes. C) the indifference curve that intersects the horizontal axis. D) the indifference curve that intersects the vertical axis.

As an MNC based in the country of Westeros, suppose your firm currently has positive exposure to the Valerian pound. With expanding input needs, you expect to take on a substantial negative exposure to the Quarthian dollar. The Valerian pound and Qarthian dollar are negatively correlated. As such your firm's overall exchange rate exposure is expected to