« 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 93 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?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

Did you know?

The U.S. Preventive Services Task Force recommends that all women age 65 years of age or older should be screened with bone densitometry.

Did you know?

Earwax has antimicrobial properties that reduce the viability of bacteria and fungus in the human ear.

Did you know?

Sperm cells are so tiny that 400 to 500 million (400,000,000–500,000,000) of them fit onto 1 tsp.

Part of the Hubble Ultra-Deep Field image showing a typical section of space containing galaxies int Part of the Hubble Ultra-Deep Field image showing a typical section of space containing galaxies int
The Gender Pay Gap Over Time: What Percentage of Men's Income Do Women Earn? The Gender Pay Gap Over Time: What Percentage of Men's Income Do Women Earn?
A steady needle reading that rises 2 or 3 inches Hg when the engine speed is increased slightly ... A steady needle reading that rises 2 or 3 inches Hg when the engine speed is increased slightly ...
Relationship between Income per Capita and Population Growth Relationship between Income per Capita and Population Growth
Created Equal: A Social and Political History of the United States, Brief Edition Created Equal: A Social and Political History of the United States, Brief Edition
Earth’s Oldest Preserved Rocks – 3.8 Billion Years Old, Greenland Earth’s Oldest Preserved Rocks – 3.8 Billion Years Old, Greenland
Video: Miller's reaction chamber experiment Animation

For a complete list of videos, visit our video library