The open economy multiplier is calculated as follows:
A) 1/[1-(marginal propensity to consume + marginal propensity to invest)]
B) 1/[1-(marginal propensity to consume + marginal propensity to import)]
C) 1/[1-(marginal propensity to consume + marginal propensity to invest + marginal propensity to import)]
D) 1/[1-(marginal propensity to consume + marginal propensity to invest - marginal propensity to import)]
D
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Explain the forces that caused the savings and loan debacle in the latter half of the 1980s
What will be an ideal response?
Which of the following explains why firms in competitive price-searcher and competitive price-taker markets will both have zero economic profits in the long run but a monopoly will not?
a. There is always more than one firm in competitive price-searcher and competitive price-taker markets. b. Both competitive price-searcher and competitive price-taker markets are characterized by firms producing identical goods, but a monopoly is not. c. In both competitive price-searcher and competitive price-taker markets, the barriers to entry are low; this is not true under a monopoly. d. A monopoly firm has a downward-sloping demand curve; firms in the other types of markets do not.
Which of the following statements about markets is correct? I. A market helps resources move to their highest-valued uses by means of prices changes. II. A market represents the exchanges of both buyers and sellers
A) I only B) II only C) Both I and II D) Neither I nor II
If the demand for coffee decreases as income decreases, coffee is a(n)
A. complementary good. B. normal good. C. substitute good. D. inferior good.