What will be the equilibrium level of aggregate investment
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Why are consumption and saving in the United States greater today than they were a decade ago?
How do the APC and the MPC differ? Why must the sum of the MPC and the MPS equal 1? What are the basic determinants of the consumption and saving schedules?
What are the basic determinants of investment? Explain the relationship between the real interest rate and the level of investment.
The machine is expected to contribute $550 to the year's net revenue. What is the expected rate of return?
What will be the equilibrium level of aggregate investment if the real interest rate is (a) 15 percent, (b) 10 percent, and (c) 5 percent?
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What relationship does the MPC bear to the size of the multiplier? The MPS? What will the multiplier be when the MPS is 0, .4, .6, and 1?
What is the central economic idea humorously illustrated in Art Buchwald's piece, Squaring the Economic Circle?
. What are the economic strengths and weaknesses in both? Are retailers reporting that recent sales have met their expectations?
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