Figure 9-5
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In Figure 9-5, if the second round effect of an increase in autonomous spending of $100,000 is $75,000, then the multiplier is
A. 400,000.
B. 6.
C. 4.
D. 4/5.
Answer: C
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Suppose that 19th-century politicians had succeeded in their attempt to impose a "single tax"-a tax on suppliers of land (i.e., landlords). Most of the economic burden of the tax would have been borne by
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The proposed GHG controls on stationary sources in the United States
a. recommends the use of permits with no emissions standards b. involve subsidies for the development of new abatement technologies c. include permitting requirements and emissions standards d. recommend significant monetary penalties on power plants releasing GHGs
The nominal interest rate is 6 percent and the real interest rate is 2.5 percent. What is the inflation rate?
a. 2.4 percent. b. 3.5 percent. c. 8.5 percent. d. 15 percent.