In the simple Keynesian expenditure model, a marginal propensity to consume of .9 leads to an expenditure multiplier of
A) .1.
B) .9.
C) 9.
D) 10.
D
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There is a shortage of quantity demanded over quantity supplied when
A. market price is above equilibrium price. B. market price equals equilibrium price. C. market price is below equilibrium price.
Normative analysis is concerned with how things ______.
a. should be b. are c. will be d. can be
Which one of the following transactions would be included in GDP?
A. Ms. Kim pays $50 for a used picture frame at a neighborhood garage sale. B. Mr. Doe donates $500 to his town's junior college scholarship fund. C. Ms. Bartolini pays $500 to fix the front end of her car damaged in a recent accident. D. Ms. Smith pays $5,000 to purchase 100 shares of Microsoft stock.
In the 1980s, the USA and the USSR negotiated a reduction in nuclear arms; this is an example of a
A) non-cooperative equilibrium. B) cooperative outcome that may not be a Nash equilibrium. C) cooperative outcome that was a Nash equilibrium. D) sub-game perfect equilibrium.