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According to the Bureau of Labor Statistics, a person who is not working and is not looking for work is:
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- If Julian's disposable income decreases from $4,800 to $4,200 and his level of consumption decreases from $4,500 to $4,000, it may be concluded that his marginal propensity toA) consume is 1/6.B) consume is 4/5.C) save is 1/6.D) save is 5/6.
- Suppose that the Fed judges inflation to be the most significant problem in the economy and that it wishes to employ all three of its policy instruments, then the Fed will engage inA.open market sales, increasing the reserve requirement, and increasing the discount rate.B.open market sales, decreasing the reserve requirement, and increasing the discount rate.C.open market purchase, increasing the reserve requirement, and decreasing the discount rate.D.open market purchase, increasing the reserve requirement, and increasing the discount rate.
- Which of the following is a possible effect of an increase in the price level in an economy