The simple multiplier 1/MPS:
A. Understates the actual multiplier because it includes leakages in domestic spending from
the purchase of imports or the paying of taxes
B. Understates the actual multiplier because it excludes leakages in domestic spending from
the purchase of imports or the paying of taxes
C. Overstates the actual multiplier because it includes leakages in domestic spending from
the purchase of imports or the paying of taxes
D. Overstates the actual multiplier because it excludes leakages in domestic spending from the purchase of imports or the paying of taxes
D. Overstates the actual multiplier because it excludes leakages in domestic spending from the purchase of imports or the paying of taxes
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At the time it collapsed in 1991, the Soviet Union possessed all of the factors that promote increases in economic growth except:
A. a large stock of capital. B. abundant natural resources. C. a political and legal environment that promoted economic productivity. D. a highly educated worker force.
Generally with bond ratings, the higher the rating, the ________ the interest rate an investor will receive and the ________ the risk that the issuer of the bond will default
A) higher; higher B) lower; lower C) higher; lower D) lower; higher
Price elasticity of demand basically measures
A) the reliability of a product. B) the responsiveness of consumers to price changes. C) the variability of price changes. D) the percentage change in market price as a result of a change in demand.
If a firm manager has a base salary of $50,000 and also gets 2 percent of all profits, how much will his/her income be if revenues are $8,000,000 and profits are $2,000,000?
A. $90,000 B. $210,000 C. $250,000 D. $150,000