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Question
Everything else held constant, if total consumption increases from $600 to $800 because of an increase of disposable income of $400, then the mpc is equal toA. 0.2.
B. 0.4.
C. 0.5.
D. 0.6.
Answer
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Related questions
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The organization responsible for the conduct of monetary policy in the United States is the
A. Comptroller of the Currency.
B. U.S. Treasury.
C. Federal Reserve System.
D. Bureau of Monetary Affairs.
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A. balanced budgets.
B. rapidly growing money supplies.
C. falling money supplies.
D. constant money supplies.
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B. banks.
C. over-the-counter markets.
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B. since deregulation now provide services only to small depositors.
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A. consumption function
B. investment function
C. government spending and tax
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A. IS; right
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A. demand; right
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Q:
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Q:
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Q:
The Lucas critique indicates that
A. advocates of discretionary policies' criticisms of rational expectations models are well-founded.
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Q:
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Q:
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Q:
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Q:
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Q:
Explain and demonstrate graphically the effects of a negative supply shock in both the short-run and long-run.
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Q:
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