ECON 1120 Midterm: Prelim 2 Makeup revised[1]
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Part i : multiple choice, 10 points (each question is worth point). Answer: e: people with higher income will generally have a ______ average propensity to consume, even if they have the same marginal propensity to consume as lower income individuals, higher lower, the same. A there is no substitution effect because a change in dividend payments does not change the trade-off between work and leisure. B there is no income effect because a change in dividend payments does not change the trade-off between work and leisure. C there is no substitution effect because a change in dividend payments does not change a household"s permanent income. D there is no income effect because a change in dividend payments does not change a household"s permanent income. November 12, 2009: contractionary fiscal policy and contractionary monetary policy. Answer: a: the orcs are preparing to war against the humans and have increased the government"s military spending.
