If the marginal propensity to save is 0.2 in an economy, a $20 billion rise in investment spending will increase:
A. GDP by $120 billion.
B. GDP by $20 billion.
C. saving by $25 billion.
D. consumption by $80 billion.
D. consumption by $80 billion.
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Optimal currency areas should have ________ in order to succeed
A) high labor mobility B) low labor mobility C) imperfectly mobile capital D) few policy externalities
For an oligopolistic firm, which of the following can be identified as a strategy?
A) Produce 10,000 units regardless of what the rivals do. B) Advertise if the rival advertises, do not advertise if the rival does not advertise. C) Raise the price if the rival raises the price, keep the current price if the rival lowers its price. D) All of above.
A merger between an auto manufacturer and a steel mill would result in which of the following?
a. A conglomerate merger. b. A vertical merger. c. A horizontal merger. d. A monopoly merger.
According to the neo-Keynesians, the Phillips curve is stable over time
Indicate whether the statement is true or false