In Figure 3-7 above, a $250 increase in AP causes
A) Y to increase by $1250.
B) induced saving to increase by $250.
C) consumption to increase by $1000.
D) all of the above.
D
Economics
You might also like to view...
Due to automatic stabilizers, when the nation's total income rises, government transfer payments
A. and tax revenues increase. B. decrease and tax revenues increase. C. increase and tax revenues decrease. D. and tax revenues decrease.
Economics
The main difference between paper money and coins as forms of money is that
A. paper money issued by the Federal Reserve Board is backed by gold while coins are not. B. paper money serves as a unit of account while coins do not. C. the metal in coins is more durable than paper. D. the metallic content of coins makes them more acceptable as money.
Economics