If disposable income increases by $100 and saving increased by $25, ceteris paribus, we may conclude that
A) the marginal propensity to consume is 0.25.
B) the marginal propensity to save is 0.25.
C) $15 is autonomous consumption.
D) a change in disposable income is induced by a change in consumption.
B
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The demand curve for capital is
a. its entire marginal physical product curve. b. the downward-sloping portion of its marginal physical product curve. c. its entire marginal revenue product curve. d. the downward-sloping portion of its marginal revenue product curve.
The aggregate demand curve shifts to the right when the Fed:
A. increases its target inflation rate, reflected by a downward shift in the Fed's policy reaction function. B. decreases real interest rates in response to inflation, but does not change its target inflation rate or the Fed's policy reaction function. C. decreases its target inflation rate, reflected by an upward shift in the Fed's policy reaction function. D. increases real interest rates in response to inflation, but does not change its target inflation rate or the Fed's policy reaction function.