If you were told the MPC was = 0.75 and the government engaged in a tax decrease of $400B, then the initial change in GDP would be:
A. $400B.
B. $1600B.
C. $300B.
D. $1200B
C. $300B.
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Dent 'n' Scratch Used Cars and Trucks employs 3 salesmen. Data for their sales last month are shown in this table: Cars Sold Trucks SoldLarry105Joe99Ralph312Based on last month's data, ________ has an absolute advantage in selling cars and ________ has an absolute advantage in selling trucks.
A. Joe; Joe B. Ralph; Larry C. Larry; Joe D. Larry; Ralph
Some corporate governance experts believe that serving on a company's board of directors for an extended length of time ________that member's independence from the company's CEO
If this is true, it would tend to ________ the principal-agent problem. A) diminishes; increase B) enhances; increase C) has no impact on; increase D) diminishes; decrease
If the real rate of interest is the same internationally, then the nominal interest rates differ solely by the expected inflation differential in two countries
Indicate whether the statement is true or false
The condition in circular-flow models whereby firms purchase all the goods not purchased by households is that
A) inventory investment is zero. B) saving is zero. C) fixed investment is zero. D) consumption equals investment. E) investment equals saving.