Suppose that the price of butter is $3 per pound and the price of margarine is $2 per pound. If the price of butter rises to $3.90 and the price of margarine rises to $2.20, then the absolute price of butter has _______________ and the relative price of butter has _______________
A) risen; fallen
B) fallen; risen
C) risen; risen
D) fallen; fallen
C
Economics
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If the simple spending multiplier is 10, the marginal propensity to save (MPS) is:
a. 1/10. b. 9/10. c. 1/9 d. 10/9. e. 9.
Economics
A situation in which the market system allocates too few resources to the production of a given activity is known as
A) market allocation. B) market failure. C) market efficiency. D) market signaling.
Economics