Assume a closed economy with fixed taxes and the marginal propensity to consume is equal to 0.9. What is the government spending multiplier?
A) 10 B) 9 C) 5 D) 1
A
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Evidence to support the Ricardo-Barro effect would show that
A) government budget deficits have no effect on the real interest rate or investment. B) higher government budget surpluses decrease investment. C) higher government budget deficits decrease investment. D) higher government budget deficits raise the real interest rate. E) government budget deficits increase household consumption.
Refer to the graph shown.
A monopolist that efficiently produces the profit-maximizing level of output would have per-unit cost equal to:
A. A. B. B. C. C. D. D.
A chart that lists how much of a good a supplier will offer at various prices:
a. subsidy b. supply schedule c. law of supply d. elasticity of supply e. excise tax
A firm is more likely to invest in new capital if
A. the productivity of capital is high. B. it expects future sales to grow. C. it has no excess capital. D. all of the above.