Refer to the above figure. The equilibrium level of real GDP occurs
A) at point A.
B) to the right of point A.
C) to the left of point A.
D) at the undetermined point on the graph depending upon the level of investment.
A
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When disposal income is $5.0 trillion, consumption expenditure is $4.5 trillion. When disposal income is $6.0 trillion, consumption expenditure is $5.0 trillion. What is the marginal propensity to consume?
What will be an ideal response?
Which of the following statements is correct?
a. In the short run, interest rate differentials have the greatest impact on exchange rates. b. In the medium run, differences in growth rates of aggregate demand have the greatest impact on exchange rates. c. In the long run, price and inflation differentials have the greatest impact on exchange rates. d. All of the above are correct.