If the MPC is 0.75 and the MPM is 0.25, the open economy multiplier is 2.
Answer the following statement true (T) or false (F)
True
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What characteristic do both human and physical capital share?
A) Both are controlled by the government. B) Current costs are incurred for future benefits. C) The use of both exhibits rivalry. D) They can easily be transferred to new ownership.
Consider the production possibilities frontier in the figure shown. The opportunity cost of cars when moving from point B to point C:
A. there is no opportunity cost when we move from B to C. B. is greater than the opportunity cost of cars when moving between any other two points. C. is greater than the opportunity cost of cars when moving from point A to point B. D. is less than the opportunity cost of cars when moving from point A to point B.
In general, a firm will be likely to invest as long as the
A. profits realized from the investment are sufficient to cover the interest payments. B. firm can sell bonds directly to the public instead of borrowing from a bank. C. firm doesn't have to borrow any money to make the investment. D. interest rate is less than the inflation rate.
The marginal revenue product of an input tends to decrease as
A. the price of the input decreases. B. the price of output increases. C. productivity increases. D. more of the input is used.