If the marginal propensity to consume in a country is 0.5, then the value of the tax multiplier is:
a. ?1
b. ?0.5.
c. ?2.
d. ?1.5.
a
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Policymakers in a country with a balance of payments surplus may not want to see their country's currency appreciate because this would
A) hurt consumers in their country by making foreign goods more expensive. B) hurt domestic businesses by making foreign goods cheaper in their country. C) increase inflation in their country. D) decrease the wealth of the country.
Everything else held constant, if aggregate output is to the ________ of the IS curve, then there is an excess demand of goods which will cause aggregate output to ________
A) right; fall B) right; rise C) left; fall D) left; rise
Which of the following refers to a shift in the demand curve?
A) "This new advertising campaign should really increase our demand." B) "Let's drop our price to increase our demand." C) "We dare not raise our price because our demand will drop." D) "If new sellers enter the market, the demand for the product is bound to increase."
The opportunity cost of a decision is the
A) value of the best alternative not chosen. B) value of all the alternatives not chosen. C) cost of making the wrong choice. D) cost incurred by others who are unhappy with your decision.