Suppose an economy can be described by the consumption function C = 75 + 0.80YD and I = $50. What is the multiplier?
A. 5.
B. 0.20.
C. 1.25.
D. 0.80.
Answer: A
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a. decrease short-term interest rates to a greater degree than long-term interest rates. b. decrease long-term interest rates to a greater degree than short-term interest rates. c. increase short-term interest rates to a greater degree than long-term interest rates. d. increase long-term interest rates to a greater degree than short-term interest rates.
The owners of a business
a. are paid the market rate of return for resources they supply to the firm. b. are residual income claimants. c. have little incentive to monitor shirking on the part of employees. d. have little incentive to provide their employees with an incentive system that encourages operational efficiency.
In recent years the U.S. social and economic problems have _____ and government will get _____ involved in solving these problems.
A. increased; more B. increased; less C. decreased; more D. decreased; less
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A) challenge his or her opponent's commitment to balancing the budget. B) get his or her opponent to say something that will allow a label of "left-wing" or "right-wing" to be attached on her. C) accuse the opponent of going exclusively after the median voter, who is never interested in ends, only means. D) accuse the opponent of going after the votes of the rationally ignorant.