The relative price of a pineapple today in terms of pineapples tomorrow is given by
a. 1 - r
b. r
c. 1 + r
d. 1/(1 + r)
c. 1 + r
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When the multiplier is ________, an autonomous decrease in investment of $200 billion decreases equilibrium real GDP by $400 billion
When the multiplier is ________, an autonomous decrease in investment of $200 billion decreases equilibrium real GDP by $800 billion. A) 2.0; 4.0 B) 0.4; 0.2 C) 0.2; 0.4 D) 4.0; 8.0 E) $400 billion; $800 billion
Which of the following events will increase long-run aggregate supply?
A) an increase in the interest rate B) an increase in resource prices C) a decrease in expected profit D) an advance in technology
To offset the effect of a steep rise in net exports on the economy, the government might: a. increase government purchases. b. decrease government purchases. c. increase taxes
d. both (b) and (c) above
If the marginal propensity to consume is 0.75 and autonomous consumption spending will decrease by $30 billion, by how much would net taxes need to decrease in order to have no change in output? (Ignore any timing issues.)
a. $60 billion b. $30 billion c. $90 billion d. $120 billion e. $40 billion