If net taxes decrease by $100 billion and the result is an increase in GDP of $300 billion, what is the marginal propensity to consume?
a. 0.75
b. 3.0
c. 0.66
d. 0.50
e. 0.33
A
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A few decades ago, there were hardly any Subway restaurants in India. Now, they are present in almost every big city. This is an outcome of:
A) fair trade union practices. B) traditionalism. C) the protectionist policies adopted by the Indian government. D) globalization.
The proponents of adaptive expectations believe that:
a. there will be a substantial time lag before people anticipate the effects of a shift to a more expansionary macro-policy. b. macro-policies that stimulate demand and place upward pressure on the general level of prices will temporarily increase output and employment. c. discretionary changes in macro-policy can be made in a manner that will reduce the economic ups and downs of a market economy. d. all of these are true.
Profit-maximizing level of output
A. is OK.
B. is OL.
C. is OM.
D. cannot be found on this graph.
By spreading her investments out over many different assets, an investor achieves
A. a higher expected return. B. greater liquidity. C. diversification. D. increased risk.