By the permanent-income hypothesis, the long-run marginal propensity to consume is
A) j.
B) k.
C) kj.
D) k - j.
E) k/j
B
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According to the monetarists, which of the following is true?
a. Instability in the money supply is the primary cause of economic instability. b. A reduction in the money supply will cause consumers to increase spending. c. A reduction in the money supply will cause a proportional reduction in wages and prices, leaving output unchanged. d. A rapid growth rate of the money supply will lead to a rapid growth rate of real GDP.
To have competition as economists define it,
A. you need many firms in an industry, with no one firm having any influence over price. B. you need a couple of firms in the industry, with each having significant influence over the price. C. you need many firms in an industry, and it doesn't matter if one firm has influence over price. D. All of these statements are true.