If we observe that every increase in income of $120 million generates an increase in consumption of $80 million, then the simple multiplier is
A. 2/3.
B. 3/2.
C. 2
D. 3
E. 8
Answer: D
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Suppose Jack and Kate are at the town fair and are choosing which game to play. The first game has a bag with four marbles in it-1 red marble and 3 blue ones. The player draws one marble from the bag; if it is red, they win $20 and if it is blue, they win $1. The second game has a bag with 10 marbles in it-1 red, 4 blue, and 5 green. The player draws one marble from the bag; if it is red, they win $20; if it is blue, they win $5; and if it is green, they win $1. Both games cost $5 to play. Kate decides to play the second game. Her probability of pulling out a green marble is:
A. 10 percent. B. 40 percent. C. 50 percent. D. 75 percent.
Strategic behavior occurs when a firm takes a particular strategy without considering the policies of its rivals
a. True b. False Indicate whether the statement is true or false
For the courts, being too big a firm in an industry can be sufficient grounds, using the per se criterion, to charge the firm with violating antitrust laws
Indicate whether the statement is true or false
High marginal income tax rates
a. distort incentives to work. b. are used to encourage saving behavior. c. will invariably lead to lower average tax rates. d. are not associated with deadweight losses.