Answer the following statement(s) true (T) or false (F)
1. Someone with a low marginal propensity to consume probably has a low marginal propensity to save.
2. Equilibrium in the aggregate expenditure model requires that aggregate expenditure equals income.
3. According to the aggregate expenditure model, when aggregate expenditure is greater than output, output decreases.
4. Politics can affect aggregate expenditure.
5. Accounting for investment, government purchases, and net exports increases the autonomous portion of aggregate expenditure.
1. False
2. True
3. False
4. True
5. True
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What is the rate of return on a bond with a coupon of $38 payable in one year that was purchased for $950 and sold one year later for $931?
A) 2% B) 4% C) 6% D) 19%
Refer to the above table. You are given information on Jasmin's consumption for 2005 and 2015. Using 2005 as the base year compute the price index for 2015. The index equals
A) 0.75. B) 73.007. C) 87.50. D) 136.842.
The U.S. government uses discount rates that lead to consistent outcomes.
A. True B. False C. Uncertain
The federal government's fiscal year is _____ months long.
A. 6 B. 9 C. 12 D. 18