Refer to Table 10.1. The value of the government purchases multiplier in this economy is
A) 0.2.
B) 0.8.
C) 4.
D) 5.
D
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The monopolistic competition market structure is characterized by a few large firms which account for a large percentage of industry sales
a. True b. False Indicate whether the statement is true or false
A common example of indexing in the United States is: a. annual bonuses to workers
b. wage increases with seniority. c. 30-year fixed-rate mortgage loans. d. escalator clauses tied to the CPI in wage agreements.
Liquidity refers to the
a. rapidity with which money flows through the economy. b. ease with which an asset can be converted into cash. c. ease with which banks move funds from checking to savings accounts. d. All of the above are correct.
The supply of product X is perfectly inelastic if the price of X rises by:
A. 5 percent and quantity supplied rises by 7 percent. B. 8 percent and quantity supplied rises by 8 percent. C. 10 percent and quantity supplied stays the same. D. 7 percent and quantity supplied rises by 5 percent.