The equation {1/[1 - (MPC - MPM)]} represents the
A. money multiplier.
B. open economy multiplier.
C. closed economy multiplier.
D. government spending multiplier.
Answer: B
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The independence axiom implies that if I prefer a bottle of wine over a six pack of beer I will prefer half a bottle of wine with a bag of pretzels over half a sixpack of beer with a bag of pretzels.
Answer the following statement true (T) or false (F)
In 2013, per capita real GDP was roughly half its value in 1960
a. True b. False Indicate whether the statement is true or false
Taxes on polluting emissions are
a. more efficient than direct controls. b. used by all economic societies. c. less effective than direct regulations. d. easily enforced through the criminal justice system.
In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:
A. higher prices. B. lower prices. C. lower output. D. None of these is true.