Bank runs are "contagious" in that they often spread to other banks
a. True
b. False
Indicate whether the statement is true or false
True
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If the economy's real GDP doubles in 8 years, we can
A. conclude that its average annual rate of growth is 9%. B. conclude that its average annual rate of growth is 12%. C. conclude that its average annual rate of growth is 8%. D. not say anything about the average annual rate of growth.
A person committing to carpool with a friend to the gym for daily workouts is an example of:
A. status quo bias. B. the endowment effect. C. a commitment device. D. positive framing.
Answer the following statement(s) true (T) or false (F)
1. If the marginal propensity to save is 0.25 in an economy with no taxes and no imports, the marginal propensity to consume is 1.25. 2. Between 2003 and 2010, the unemployment rate in Ft. Myers, Florida, decreased from 13% to 3%. 3. Inventories are counted as investment because inventories are a source of future sales. 4. In a simple economy with no taxes, government spending, exports, or imports, if disposable income increases by $500 and $450 is consumed, $950 is saved.
(Interest Rate, Planned investment in billions): (3%,$400) (6%,$360), (9%, $320), (12%, $280), (15%, $240), (18%, $200): Suppose the expenditure multiplier is 10, and the initial interest rate is 15%. What would be the impact on the equilibrium output if the interest rate fell to 6%?
A) It would increase by $1,200 billion. B) It would decrease by $1,200 billion. C) It would decrease by $3,600 billion. D) It would increase by $3,600 billion.