"Crowding out" refers to the decrease in ________ that may result from an increase in government spending
A) private investment
B) imports
C) private saving
D) all of the above
E) none of the above
A
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A bond purchaser bought a bond from which she receives $800 a year from the issuer. If the face value of the bond is __________ then the coupon rate is __________.
A. $10,000; 10 percent B. $8,000; 8 percent C. $10,000; 8 percent D. $8,000; 12 percent E. none of the above
Suppose a monopsonist currently employs 100 workers at a wage of $400 per week. If the firm wants to expand employment to 110 workers, and the 110th worker will only work for $450 per week, what is the approximate marginal factor cost of the 110th worker?
a. $450 per week. b. $5,500 per week. c. $950 per week. d. $9,500 per week. e. $49,500 per week.
If people buy more than has been produced,
A) the economy is in equilibrium. B) total expenditures are greater than total production. C) there will be an increase in inventory. D) there will be a decrease in total output.
An MPC value of less than 1.0 indicates that as income increases:
A. Consumption also increases, and by more than the increase in income B. Consumption also increases, and at the same rate as the increase in income C. Consumption will go in the opposite direction and decrease D. Consumption also increases, though not as much as income