If the multiplier is 10, then the MPS is ________ while the MPC would be ________.
A. 1; 9
B. 0.9; 0.1
C. 9; 10
D. 0.1; 0.9
Answer: D
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The table above gives the labor market for a small foreign economy. A(n) ________ would create ________
A) minimum wage of $9.00; a decrease in job search. B) minimum wage of $5.00; an increase in job rationing. C) efficiency wage of $9.00; an increase in job rationing. D) efficiency wage of $8.00; unemployment and job rationing. E) union-negotiated wage of $7.50; unemployment and job rationing.
If you have a very low tolerance for risk, which of the following bonds would you be least likely to hold in your portfolio?
A) a U.S. Treasury bond B) a municipal bond C) a corporate bond with a rating of Aaa D) a corporate bond with a rating of Baa
Suppose that a $4 per unit tax is imposed on the sellers of DVDs. The effect of the tax will be to
a. shift the supply curve up by exactly $4 and the price paid by buyers will remain unchanged.
b. shift the supply curve up by exactly $4 and the price paid by buyers will rise by less than $4.
c. shift the supply curve up by exactly $4 and the price received by sellers will rise by exactly $4.
d. shift the demand curve down by exactly $4 and the price paid by buyers will fall by exactly $4.
The best way to think of the short run and the long run is as
A. specific periods of time, although the time periods may differ across industries. B. concepts that apply to all people who work for a firm. C. a concept that only accountants are concerned with. D. planning terms that apply to managers.