Fill in the blank: ________ leads to speculation
A) Love
B) Uncertainty
C) Greed
D) Money
E) Sin
B
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Assume a closed economy, that taxes are fixed, and the marginal propensity to consume is equal to 0.8. What is the government spending multiplier?
A) 10 B) 5 C) 4 D) 3
If you have flipped a fair coin and tails has come up 49 times in a row, what are the odds that the next flip will be a tail?
A) 0 B) 1/50 C) 1/25 D) 1/2
When the inflation rate of a country is high over a lengthy time period,
a. the year-to-year variability in the rate of inflation is generally small. b. the year-to-year variability in the rate of inflation is generally large. c. decision makers will be able to forecast future rates of inflation accurately. d. there is no reason to believe that the inflation will exert harmful side effects on real output and the prosperity of the country.
A monopolistically competitive industry has:
A. a few firms producing identical products. B. many firms producing identical products. C. a few firms producing differentiated products. D. many firms producing differentiated products.