Which of the following correctly describes the spending multiplier?
a. The initial change in consumption, investment, government spending, or net exports divided by the change in equilibrium GDP.
b. An initial increase in aggregate expenditures divided by the equilibrium GDP.
c. An initial increase in aggregate expenditures divided by the change in equilibrium GDP.
d. The ratio of the change in real GDP to an initial change in any component of aggregate expenditures.
d
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Financial systems have all but which of the following in common?
A) market-oriented emphasis B) payments systems C) central banks D) information asymmetries
A person buys a newly issued bond that matures in 6 years with a face value of $1,000 and a coupon rate of 5%. How much money will the bondholder receive in the sixth year?
A) $1,050. B) $1,500. C) $1,000. D) $50. E) $500
An example of a policy to combat poverty is
a. TANF. b. food stamps. c. Social Security. d. All of the above are correct.
The Producer Price Index (PPI) measures
a. the price level of aggregate output. b. the prices charged by manufacturers. c. changes in the prices received by producers. d. price changes passed along to consumers.