The simple multiplier equals
What will be an ideal response?
the reciprocal of the marginal propensity to save
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Suppose you bought three tickets to a concert in advance at the University ticket window. At the last minute one friend cancelled, so you could use only two of the tickets. You sold the third ticket just outside the entrance to the concert for more than the price you had originally paid. Which transaction occurred in a market?
A. Both the purchase at the University ticket window and the sale at the concert entrance were market transactions. B. The advance purchase at the University was the only market transaction. C. The sale that occurred at the concert entrance was the only market transaction. D. Neither the purchase at the University ticket window nor the sale at the concert entrance was a market transaction.
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
A cloth manufacturing firm is deciding whether or not to invest in new machinery. The machinery costs $45,000 and is expected to increase cash flows in the first year by $25,000 and in the second year by $30,000 . The firm's current fixed costs are $9,000 and current marginal costs are $15 . The firm currently charges $18 per unit. If the interest rate is 5% then the present value of the cash flows is
a. $6,020.41 b. $51,020.41 c. -$7,380.95 d. $10,000
An example of a cooperative game would be
A. oligopoly. B. perfect competition. C. monopolistic competition. D. a cartel.