Here is a consumption function: C = C0 + MPC(Yd). If C0 = $300, then we know that
A) if Yd rises by $1, then Co rises by $1.
B) if Yd rises by $1, then C rises by $300.
C) as C0 rises by $15, C rises by $15.
D) as C0 rises by $15, Yd rises by $15.
C
Economics
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According to the BEA, in the second quarter of 2012 purchases of new residential structures rose by 8.9 percent. Using the expenditure approach, this change increases
A) gross private domestic investment. B) government expenditure on goods and services. C) net exports of goods and services. D) personal consumption expenditures.
Economics
Last year, after Shirley received a 14 percent pay increase, she increased the quantity of pork chops she purchased by 6 percent. Hence, her income elasticity of demand for pork chops equals
A) 0.43. B) -0.43. C) 2.33. D) -2.33
Economics