If the MPC = 1, the spending multiplier is:
A. infinite.
B. zero.
C. 1.
D. 10.
Answer: A
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A) money B) bond C) capital D) commodities
International trade forces countries to consume a combination of goods that is inside their production possibilities curve
a. True b. False Indicate whether the statement is true or false
Public choice analysis indicates that politicians will find
a. budget deficits more attractive than budget surpluses. b. budget surpluses more attractive than budget deficits. c. budget deficits attractive during an economic boom, but surpluses attractive during a recession. d. tax increases more attractive than increases in government spending.
Consider a market for fish whose market demand and market supply for fish are specified as Qd = 300 - 2.5 P and Qs = - 20 + 1.5 P respectively. The government decides to impose a price ceiling of $50 per ton. The possible black market price after the ceiling is:
a. Shortage of 120 tons of fish b. Shortage of 175 tons of fish c. Surplus of 120 tons of fish d. There would be no market distortion