The Slope of a Graph with "Income" on the Horizontal

question 325

Multiple Choice

The slope of a graph with "income" on the horizontal axis and "saving" on the vertical axis is +0.2. This means that if

• A) income is $100, then saving is $20.
• B) income is 0.20, then saving is zero.
• C) income increases by $100, then saving will rise by $20.
• D) saving rises by $100, then income will rise by $20.

Understand the principles of cost-benefit analysis and its application in everyday choices.

Recognize how incentives and marginal thinking guide individuals' and policymakers' decisions.

Comprehend the principle that people respond to incentives and its implications for economic behavior and policy.

Understand the principles of network access control schemes and how they impact data transmission.

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Definitions:

Monetary Policy

The policy laid down by the central bank or monetary authority of a country, focusing on controlling the money supply and interest rates to achieve economic objectives.

Government Policy

Strategies and actions taken by a government to manage public resources and regulate national affairs.

Friedman And Phelps

Economists Milton Friedman and Edmund Phelps, known for their work on the natural rate of unemployment and the expectations-augmented Phillips curve.

Natural Rate

The long-term equilibrium rate of unemployment or economic output, unaffected by short-term fluctuations.