Assume the MPC is 0.72 . The multiplier is
a. 4.53.
b. 1.39.
c. 2.57.
d. 3.57.
d
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For a given market demand curve, if the market clearing price decreases, then the amount of consumer surplus will
A) decrease. B) increase. C) become negative. D) none of the above due to insufficient information.
Smokers and loud talkers who ignore the external effects of their actions are being rational in the economic sense
a. True b. False
If a structured model contains a time trend-which may capture exogenous, trending factors that are not directly modeled-then the trend acts as its own instrumental variable.
Answer the following statement true (T) or false (F)
Which fact about the term structure is the expectations theory unable to explain?
A. Why interest rates on bonds with different terms to maturity tend to move together over time. B. Why longer-term yields tend to be higher than shorter-term yields. C. Why yields on short-term bonds are more volatile than yields on long-term bonds. D. Why long-term bond yields are influenced by expected future short-term bond yields.