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AP Macroeconomics-Module 16 and 17 Study Guide Questions and Answers marginal propensity to consume (MPC) - The increase in consumer spending when income rises by $1. Because consumers normally spend part but not all of an additional dollar of disposable income, MPC is between 0 and 1. marginal propensity to save (MPS) - The increase in household savings when disposable income rises by $1 autonomous change in aggregate spending - An initial rise or fall in aggregate spending that is the ...

AP Macroeconomics-Module 22 Exam Questions and Answers 100% Pass interest rate - The price, calculated as a percentage of the amount borrowed, charged by lenders to borrowers for the use of their savings for one year savings-investment spending identity - An accounting fact that states that savings and investment spending are always equal for the economy as a whole budget surplus - The difference between tax revenue and government spending when tax revenue exceeds government spending bud...

AP Macroeconomics-Module 23 Study Guide Questions and Answers 100% Pass money - Any asset that can easily be used to purchase goods and services currency in circulation - Actual cash held by the public checkable bank deposits - Bank accounts on which people can write checks money supply - The total value of financial assets in the economy that are considered money medium of exchange - An asset that individuals acquire for the purpose of trading goods and services rather than for their own...

Chapter 32: AP Macroeconomics Questions and Correct Answers the Latest Update

exports - imports net exports = trade surplus exporting more than importing trade deficit exporting less than is imported lowest opportunity cost (comparative advantage) what often determines who exports what and who imports what? balance of payments the difference between the amount of money that comes into a country and the amount that goes out of it summary of a country's international trade current account and financial (capital) account what are the two accounts th...

Contractionary monetary policy REDUCES the money supply. The Fed may decide to take a contractionary approach by INCREASING the interest rates. Indicates a shift in AD to the left to full employment, and reduce inflationary pressures Cost Push Inflation increases in the price level (inflation)resulting from an increase in resource costs (for example, raw material prices) and hence in per unit production costs; inflation caused by reductions in aggregate supply Crowding out effect ...

Which statement is true about the circular flow diagram of an economy? A) The market for goods and services connects household spending to government spending. B) The market for factors of production connects household spending to goods produced by firms. C) The market for factors of production connects spending by firms to household income. D) The market for goods and services connects labor income to firms as employers. E) The market for goods and services connects labor income to...

AP Macroeconomics-Module 23 Questions and Correct Answers the Latest Update

AP Macroeconomics-Module 22 Questions and Correct Answers the Latest Update

AP Macroeconomics-Module 16 and 17 Questions and Correct Answers the Latest Update