If the tax multiplier is -15 and taxes are increased by $150 billion, output
A. increases by $10 billion.
B. increases by $2,250 billion.
C. falls by $2,250 billion.
D. falls by $10 billion.
Answer: C
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The assertion "capital is productive, but the ownership of capital is not," assumes the efficient use of resources
A) is different from technological efficiency and more difficult to achieve. B) is no more likely under one ownership arrangement than another. C) may be significantly affected by transferring ownership from private to public hands. D) sometimes is affected by transferring ownership from public to private hands.
In the African nation of Senegal, to enroll in school a child needs a Birth Certificate that costs $25 . This price is several weeks' income for many families. Explain how this requirement is likely to affect the growth of human capital in Senegal
What will be an ideal response?
If a company's stock is perceived to be more risky than average, what will happen to their equity cost of capital? Explain using the capital asset pricing model
What will be an ideal response?
Assume the marginal propensity to consume (MPC) is 0.80 and the government increases taxes by $100 billion. The aggregate demand curve will shift to the:
a. left by $80 billion. b. right by $200 billion. c. right by $400 billion. d. left by $400 billion.