A tax multiplier equal to ?4.30 would imply that a $100 tax increase would lead to a:
A. $430 decline in real GDP.
B. $430 increase in real GDP.
C. 4.3 percent increase in real GDP.
D. 4.3 percent decrease in real GDP.
Answer: A
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If average labor productivity in two countries is the same, average living standards will be higher in the country with:
A. the lower share of population employed. B. the smaller population. C. the higher share of population employed D. the larger population.
A monopoly ________
A. can choose its price and output and always has the option of price discriminating B. is a price taker and by offering a range of discounts can price discri-minate C. that produces a good that cannot be resold might choose to price dis-criminate D. book store that offers a discount on Tuesdays is price discriminating
Which of the following increases money demand?
A) Disruptions in the banking system. B) The introduction of online banking. C) The wider availability of ATMs. D) The introduction of deposit insurance.
What is the value of a newly issued 3-year bond with a face value of $5,000 and no coupon payments? Assume the interest rate is 8 percent (0.08) per year
a. $4,629.63 b. $5,000.00 c. $3,969.16 d. $3,756.57 e. $4,545.45