If you were told the MPC was = 0.75 and the government engaged in a tax decrease of $400B, then the overall change in GDP would be:
A. $1200B
B. $400B.
C. $300B.
D. $1600B.
Answer: A
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Present value analysis suggests that the real rate of return on Social Security is
A. around 10% for workers of all income levels. B. roughly 3% for high-income earners and negative for low-income earners. C. more than 10% for high-income earners. D. roughly 3% for low-income earners and negative for high-income earners.
Suppose that to increase sales of hybrid vehicles, auto manufacturers are offering large cash incentives. This is an example of a macroeconomic topic
Indicate whether the statement is true or false
The practice of parents giving their children an amount of land similar to what they received from their parents is known as a
(a) targeted bequest. (b) strategic bequest. (c) life cycle bequest. (d) investment bequest.
Pollution
A) creates a negative externality. B) is increased when property rights are defined. C) is the result of capitalism. D) exists because air and water are privately owned resources.