If the consumption function is defined as C = 7,250 + 0.8Y, what is the multiplier?
A) 0.2
B) 0.8
C) 1.25
D) 5
D
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In the equation 
, c denotes consumption and i denotes income. What is the residual for the 5th observation if 
=$500 and 
=$475?
A. $975 B. $300 C. $25 D. $50
If banks face a reserve requirement of 10%, then when the Fed increases bank reserves by $20 million, the money supply can be estimated to increase by about
A. $2 million. B. $20 million. C. $200 million. D. None of the choices are correct.
Consider an output beyond the minimum point of a firm’s short run average total cost curve. At this level of output the firm can use its _______ input at a lower average cost but only by using its _______ input at a higher average cost.
A) fixed capital; variable labor B) variable labor; fixed capital C) variable capital; fixed labor D) fixed labor; variable capital
A failure in coordination between workers and employers is most likely to cause an expansionary gap.
a. true b. false