If an initial increase in investment spending of $30 caused equilibrium output to increase by $120, what is the value of the MPC?
a. 0.25
b. 0.50
c. 0.60
d. 0.75
e. 0.80
D
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Average duration of unemployment is an example of a:
A) leading indicator. B) coincident indicator. C) lagging indicator. D) none of the above.
If the economy is in an inflationary boom, the Fed would most likely
a. increase bank reserves by raising the discount rate. b. increase bank reserves by buying government securities c. decrease bank reserves by lowering the discount rate. d. decrease bank reserves by selling government securities. e. decrease bank reserves by lowering the legal reserve requirement.
In what sense is it likely that geography has an effect on a country's rate of economic growth?
Which of the following is an example of a transfer payment?
A. Your grandma buys you a new watch for graduation. B. A military contractor pays to move its employee from the East Coast to the West Coast. C. The county office gives its low-income residents food stamps. D. The government floats bonds for a new highway.