Ramey found that a deficit-financed temporary increase in government purchases has a multiplier in the range of
A. 0.8 to 1.5.
B. 0.0 to 0.2.
C. 0.2 to 0.8.
D. 1.5 to 2.2.
Answer: A
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The elasticity measure that has been employed by the courts to assess the degree of market competition is
A. price elasticity of demand. B. income elasticity of demand. C. cross elasticity of demand. D. inverse elasticity of demand.
In what ways have financial innovations affected the demand for money?
What will be an ideal response?
A monopoly:
A. is constantly threatened by the entry of new firms. B. is constrained by demand. C. is constrained because its decisions cannot affect market price. D. faces a horizontal demand curve.
Mechanism design can be used to provide employers and employees with the right incentives in labor markets.
Answer the following statement true (T) or false (F)