Which of the following is TRUE?
A) MPC + MPS = 1 B) MPC * MPS = 1 C) MPC - MPS = 1 D) MPC / MPS = 1
A
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Socialism is correctly described by which of the following statements?
A. Central planning is never used to answer the basic economic questions. B. Markets are used exclusively to answer the basic economic questions. C. Tradition is used exclusively to answer the basic economic questions. D. Government ownership of many resources and centralized decision-making answers the basic economic questions.
In the U.S. economy, the inflation rate in 1975 peaked at ________ percent.
A. 9.2 B. 11.1 C. 14.2 D. 22.4
Typically, as an economy begins to emerge from a recessionary phase of the business cycle
A) investment begins to fall. B) inflation begins to fall. C) unemployment falls immediately. D) unemployment continues to rise.
Suppose the government decided to tighten monetary policy and decrease government expenditures. In the short run in the Keynesian model, the effect of these policies would be to ________ the real interest rate and ________ the level of output.
A. lower; have an ambiguous effect on B. raise; decrease C. lower; decrease D. have an ambiguous effect on; decrease