Menu costs are the:
a. cost of changing interest rates.
b. cost of converting currencies.
c. cost of changing prices.
d. cost of changing exchange rates.
Ans: c. cost of changing prices.
Economics
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Answer the following statements true (T) or false (F)
1) If DI is $275 billion and the APC is 0.8, we can conclude that saving is $55 billion. 2) If the MPC is constant at various levels of income, then the APC must also be constant at all of those income levels. 3) The average propensity to consume is defined as income divided by consumption. 4) 1 - MPC = MPS. 5) If the Hennige family's marginal propensity to consume is .70, then it will necessarily consume seven-tenths of its total income.
Economics
Which tool of monetary policy is most important? Why?
What will be an ideal response?
Economics