Which of the following is true?
A) If MPC = 0.50, then the multiplier is 2.00.
B) If MPC = 0.82, then the multiplier is 1.25.
C) If MPS = 0.35, then the multiplier is 2.86.
D) If MPC = 0.97, then the multiplier is 3.33.
E) a and c
E
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If Howard takes out a $400 loan for one year at 5 percent interest annually, he will pay back a total of:
A. $400. B. $440. C. $420. D. $20.
Which is the correct match of an economic resource and payment for that resource?
a. Entrepreneurial ability and wages b. Capital and interest income c. Land and profit d. Labor and rental income
Which of the following best illustrates the use of discretionary fiscal policy?
What will be an ideal response?
Answer the following statements true (T) or false (F)
1. Majority voting produces efficient outcomes because it takes into account the strength of the preferences of individual voters. 2. Majority voting on whether or not a public good should be produced could lead to a result where a public good whose costs are bigger than the benefits would end up getting approved by the voters. 3. If a public good provides social benefits that are greater than its costs, then majority of voters would always vote in favor of producing the good. 4. Special interest groups result from people with strong preferences on a particular issue banding together to let policymakers know their preferences. 5. Political logrolling, or vote-trading, can turn a potentially inefficient voting outcome into an efficient one.