Which of the following is the best example of an automatic stabilizer?

A. welfare payments
B. foreign aid
C. defense spending
D. highway construction


Answer: A

Economics

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Suppose a bank has $10 million in deposits with no excess reserves, and the reserve requirement is 25%. If the Fed reduces the reserve requirement to 20%, the bank will now have excess reserves of

A) $0. B) $0.5 million. C) $1.5 million. D) $2 million.

Economics

If the exchange rate falls from 120 yen per dollar to 100 yen per dollar, the dollar has ________ and the yen has ________

A) depreciated; appreciated B) appreciated; depreciated C) depreciated; depreciated D) appreciated; appreciated

Economics

Refer to Table 12-1. If the market price of each camera case is $8, what is the firm's total revenue?

A) $2,400 B) $3,200 C) $4,000 D) $4,800

Economics

Use the growth accounting equation to calculate productivity growth, given output growth of 3.5%, capital stock growth of 5%, labor employment growth of 2%, the output elasticity of capital of 0.3, and the output elasticity of labor of 0.7

What will be an ideal response?

Economics