Which of the following correctly describes the simple tax multiplier?
a. 1/(1-MPC)
b. MPC/(1-MPC)
c. -MPC/(1-MPC)
d. MPS/MPC
c
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Which of the following is true of fiat money?
A) Fiat money is illegal and difficult to counterfeit. B) The raw materials required for the production of fiat money are available only in a few countries. C) Fiat money is not backed by a physical commodity. D) The technology required to produce fiat money is not widely available.
A contractionary monetary policy helps close an inflationary gap in an economy but leads to lower levels of output and employment
a. True b. False Indicate whether the statement is true or false
A compensating differential refers to differences in pay due to
a. productivity levels of workers. b. signaling differences of workers. c. nonmonetary characteristics of jobs. d. All of the above are correct.
All of the following are true of the high-growth Asian economies EXCEPT
A) macroeconomic stability has been a high priority of their economic policies. B) strong, credible commitments to sharing economic growth across all layers of society exist. C) exports have been promoted while at the same time being more open to imports than other developing countries. D) restrictions on imports of capital goods have helped to favor the development of domestic technology.