If the MPC is 0.75, what is the value of the government purchases multiplier?
a. -1.33
b. 3.0
c. -3.0
d. 4.0
e. -4.0
D
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If a firm used a combination of inputs that was to the left of its isocost line, it would indicate that
A) it is exceeding its budget. B) it is not spending all of its budget. C) it is operating at its optimal point because it is saving money. D) None of the above
The required reserve ratio in an economy is 12.8 percent. If two banks, Bank A and Bank B, receive deposits of $25,000 and $37,500, respectively, then the value of the money multiplier in the economy is: a. 10.00. b. 12.50. c. 6.25
d. 8.00.
Which statement is true?
A. The National Football League, Major League Baseball, and the National Basketball Association are all monopsonies. B. Professional baseball, basketball, and football all used to be monopsonies, but ceased to be with the emergence of free agent bargaining. C. Professional sports are not now, nor ever were monopsonies. D. None of these statements are true.
As actual output falls below the potential level in the short run, which of the following is most likely to occur?
What will be an ideal response?