It is true that:
A. equal increases in government spending and taxes do not change the equilibrium GDP.
B. equal increases in government spending and taxes reduce the equilibrium GDP.
C. equal increases in government spending and taxes increase the equilibrium GDP.
D. taxes have a stronger effect upon equilibrium GDP than do government purchases.
C. equal increases in government spending and taxes increase the equilibrium GDP.
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According to the above table, as the level of real disposable income increases
A) the APS increases. B) the APC increases. C) the marginal propensity to save declines. D) the marginal propensity to consume increases.
Barter system is less desirable than using money for exchange because: a. it is a more inefficient and a time-consuming process
b. gold and silver are risky and inconvenient to transport. c. it tends to promote inflation. d. gold and silver are relatively scarcer than other commodities.
Real estate markets tend to be highly segmented due to the heterogeneous nature of the products. Which of the following examples depicts this issue of market segmentation?
A. A couple searching for a single-family detached unit is willing to consider other residential property types such as an attached townhouse unit or condominium. B. A couple searching for a single-family detached unit has limited their search to homes in a single elementary school district C. A couple searching for a single-family detached unit has set a timeline for their search of 6 months, at which point they will renew their current apartment lease. D. A couple searching for a single-family detached unit has limited their search to be in a specific price range between $350,000 and $400,000.
Which of the following would create the most money?
(A) The initial deposit is $3,000 and the required reserve ratio is 10 percent. (B) The initial deposit is $7,500 and the required reserve ratio is 25 percent. (C) The initial deposit is $4,500 and the required reserve ratio is 15 percent. (D) The initial deposit is $6,500 and the required reserve ratio is 20 percent.