Traders in futures markets settle gains and losses each day
A) by making margin payments.
B) by using settlement-by-offset.
C) in a process called mark-to-market settlement.
D) by making arbitrage payments.
C
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Physical capital makes workers ________, so a declining capital stock ________
A) more productive; helps an economy grow B) less productive; helps an economy grow C) more productive; hinders economic growth D) less productive; hinders economic growth
Suppose a roll of paper towels costs $6 at Sam's Quick Stop, a local quick stop, and the same roll of paper towels costs $2 at Big Supplies, a large, retailer located in a more remote location. If a customer's total cost of travel to Sam's Quick Stop is $3 and is $6 to Big Supplies, which of the following is true?
A) It is cheaper for the consumer to buy the paper towels at Big Supplies. B) It is more expensive for the consumer to buy the paper towels at Big Supplies. C) The consumer is indifferent as to where they buy the paper towels. D) It is cheaper for the consumer to buy the paper towels at Sam's Quick Stop.
Assume that we want to drive our economy out of recession by generating a $400 billion change in national income. The MPC is 0.8 . Which of the following policy prescriptions would generate the targeted $400 billion change in income?
a. $120 billion increase in government spending and $50 billion increase in tax revenue b. $140 billion increase in government spending and $70 billion increase in tax revenue c. $160 billion increase in government spending and $120 billion increase in tax revenue d. $220 billion increase in government spending and $100 billion increase in tax revenue e. $400 billion increase in government spending and $300 billion increase in tax revenue
In Lithasia, the marginal propensity to consume is 0.4, base consumption is $2,000 . the tax rate is 30 percent of income, national income is $4,000 . investment spending is $1,000 . government spending is $2,500, export earning is $1,500, and import spending is $3,000 . What is the aggregate expenditure of the economy?