If a $10 billion increase in investment leads to a $20 billion increase in GDP, the multiplier is
A) 0.5
B) 2
C) 10
D) 30
B
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The inefficiency created by income taxation occurs due to
A) the cost of collecting taxes and making welfare payments. B) motivating welfare recipients to work less. C) motivating income earners to work less. D) All of the above answers are correct.
What is a black market?
What will be an ideal response?
A firm sets its price at $10.00 per unit. It has an average variable cost of $8.00 and an average fixed cost of $4.00 per unit. In the long run, this firm is a. earning zero profits and hence should shut down
b. unable to cover all of its fixed cost and hence should shut down. c. incurring a profit. d. incurring a loss per unit of $2.00, but since it can still cover its variable costs, should continue to operate.
What is the main difference between a centrally planned economy and a market economy?