To achieve a $500 billion increase in AD, if the MPC is 0.8, what increase in government purchases would be called for?
a. $625 billion
b. $500 billion
c. $400 billion
d. $100 billion
d
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An import quota protects domestic producers by
A) setting a limit on the amount of imports. B) placing a prohibitive tax on imports. C) encouraging competition among domestic producers. D) increasing the total supply of the product.
Describe the transition from short-run to long-run equilibrium in a monopolistically competitive industry
What will be an ideal response?
If Joshua gets 200 utils from consuming three slices of pizza, 220 utils from consuming four slices of pizza, and 230 utils from consuming five slices of pizza, then Joshua's marginal utility from the fifth slice of pizza is:
A. 230 utils. B. 30 utils. C. 20 utils. D. 10 utils.
In a fractional reserve banking system:
A. bank panics cannot occur. B. the monetary system must be backed by gold. C. banks can create money through the lending process. D. the Federal Reserve has no control over the amount of money in circulation.