Within the Keynesian model, if the marginal propensity to consume is 0.8, which of the following is true?
a. When consumption increases by $5, income increases by $1.
b. When consumption increases by $1, saving increases by $5.
c. When investment increases by $1, income increases by $5.
d. When investment increases by $1, saving increases by $5.
C
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According to the Coase Theorem, if the transactions costs are low and there are only a few people involved, the output will equal ________ tons of paper if ________ own the lake. A) 3; only the lakeside residents B) 3; either the firms or lakeside residents C) 4; the firms D) 4; either the firms or lakeside residents
Which of the following is not an in-kind subsidy?
a. SNAP (food stamps). b. Low-cost rental housing. c. Medicare. d. Medicaid. e. Unemployment compensation.