Assuming there is no government or foreign sector, if the multiplier is 10, the MPC is
A. 0.9.
B. 0.8.
C. 0.5.
D. 0.1.
Answer: A
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One well-established full-service stock brokerage charges $35 commissions per trade. A new online brokerage charges $7.95 per trade. Yet, many people still elect to use the traditional, full service broker. Why?
A) They're fools. B) They must not be aware of online brokers. C) They might perceive the low commission to be a sign of low reliability. D) They are failing to economize.
Suppose the equilibrium price for soft drinks is $1.00. If the current price in the soft drink market is $1.25 each
A) there will be a surplus of soft drinks. B) there will be a shortage of soft drinks. C) the supply curve of soft drinks will shift leftward. D) the demand curve for soft drinks will shift leftward.
In thinking about the criteria for an ideal voting system, needing no dictator means:
A. one person cannot have their preferences represented in what voters decide upon. B. one person cannot have the power to enact his or her own preferences. C. those in power must be forced to listen to the will of the people when enacting policy. D. the presence of pure democracy is needed, so everyone gets a vote.
If the nominal interest rate is 8 percent and the real interest rate is 5.5 percent, then the inflation rate is
a. -2.5 percent. b. 0.45 percent. c. 2.5 percent. d. 13.5 percent.