An increase in which of the following will increase the value of the spending multiplier?
A) The supply of money
B) Equilibrium output
C) Personal income tax rates
D) The marginal propensity to consume
E) The required reserve ratio
Ans: D) The marginal propensity to consume
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One of the impacts of maturity transformation is that:
A) relatively liquid assets become relatively illiquid. B) it decreases the rate of inflation. C) it increases the rate of inflation. D) relatively illiquid assets become relatively liquid.
Which of the following would be an example of FDI?
A) A Brazilian investor buys German government bond. B) An American buys a new Swedish car. C) An Italian firm builds a plant in Nebraska. D) A Canadian investor buys a French equity.
If the U.S. real exchange rate with Japan is greater than 1, then U.S. goods are relatively cheap
a. True b. False Indicate whether the statement is true or false
Larry's Lunchcart is a small street vendor business. If Larry makes 15 pretzels in his first hour of business and incurs a total cost of $16.50, his average total cost per pretzel is
a. $1.10. b. $6.50. c. $15.00. d. $16.50.