The oversimplified multiplier formula assumes that the
A. level of consumption spending is fixed.
B. price level is fixed.
C. government spending is fixed.
D. net exports depend on income.
Answer: B
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The Troubled Asset Relief Program (TARP) allowed
A) the Treasury to inject funds into commercial banks in return for stock in the banks. B) the Fed to provide funds to commercial banks in return for stock. C) the Treasury to insure bank deposits at major U.S. banks. D) the Fed to make loans to banks as the lender of last resort.
Cartels can more easily detect cheating by cartel members if the products sold by each member are largely homogeneous
As product quality varies, the observed prices charged by cartel members may be due to differences in the products, or they may be due to cheating. Which of the following goods would more difficult to monitor for potential cheating? A) Aluminum ingots B) Industrial concrete C) Steel beams D) Luxury yachts
Which welfare program allows the working poor to receive income refunds that can be greater than the taxes they paid during the last year?
a. SSI b. TANF c. EITC d. Medicaid
People are unlikely to choose to pay extra for a low-emissions automobile, because they:
A. do not fully understand the environmental benefits of lower emissions. B. are better off "free-riding" on others' attempts to reduce emissions. C. would have to sacrifice fuel efficiency and automotive performance. D. cannot afford the extra expense of "green" technology.