When you receive this week's paycheck, you can either spend it or save it. The fraction of each additional dollar of disposable income that you ____ is known as your _____.

Suppose the government decided to tighten monetary policy and decrease government expenditures. In the short run in the Keynesian model, the effect of these policies would be to ________ the real interest rate and ________ the level of output

A) lower; decrease B) lower; have an ambiguous effect on C) have an ambiguous effect on; decrease D) raise; decrease

You're called in as a consultant: Price is $24 . At a production level of 200 units, MC = MR, AFC = $6, and AVC = $25 . What do you advise this firm to do?

a. Increase output. b. Decrease output. c. Shut down operations. d. Stay at the current output; the firm is earning a profit of $1,400. e. Stay at the current output; the firm is losing $1,400.