« previous next »

Author Question: If the marginal propensity to consume is equal to 0.70 and income rises by 20 billion in an economy, ... (Read 55 times)

elizabeth18

  • Hero Member
  • *****
  • Posts: 559
on: Jun 30, 2018
If the marginal propensity to consume is equal to 0.70 and income rises by 20 billion in an economy, then consumption spending will increase by:
 a. 6 billion.
 b. 14 billion.
  c. 20 billion.
  d. 28 billion.
  e. 67 billion.

Question 2

When negative externalities like pollution exist, competition leads to:
 a. a socially efficient outcome.
  b. too few goods being bought and sold.
  c. a market equilibrium price that is too high.
  d. more production than would be efficient.


voltaire123

  • Sr. Member
  • ****
  • Posts: 301
Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

d


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

elizabeth18

  • Hero Member
  • *****
  • Posts: 559
Reply #2 on: Jun 30, 2018
Correct answers!


voltaire123

  • Sr. Member
  • ****
  • Posts: 301
Reply #3 on: Jun 30, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

In 2006, a generic antinausea drug named ondansetron was approved. It is used to stop nausea and vomiting associated with surgery, chemotherapy, and radiation therapy.

Did you know?

Cancer has been around as long as humankind, but only in the second half of the twentieth century did the number of cancer cases explode.

Did you know?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Sources of income for U.S. population aged 65 and over. Sources of income for U.S. population aged 65 and over.
The More Things Change, The More They Say the Same: Dividing the Nation's Income The More Things Change, The More They Say the Same: Dividing the Nation's Income
Marginal Supply - Demand Curve Marginal Supply - Demand Curve
Relationship between Latitude and Income per Capita Relationship between Latitude and Income per Capita
Income per Capita versus Income of the Bottom Quintile Income per Capita versus Income of the Bottom Quintile
economy manegment economy manegment
Video: Oxygen - hemoglobin dissociation curve & Hemoglobin's affinity with oxygen - acidity

For a complete list of videos, visit our video library