The multiplier can be calculated by dividing:
A. the initial change in spending by the change in real GDP.
B. one by one minus the marginal propensity to save.
C. one by one minus the marginal propensity to invest.
D. the change in real GDP by the initial change in spending.
Answer: D
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The long-run aggregate supply curve illustrates the
A) relationship of the price level and real GDP when the economy is at full employment. B) relationship of the price level and real GDP when the economy is at zero unemployment. C) amount of products producers offer at various prices when money wages and other resource prices are fixed. D) surpluses, shortages and equilibrium level of GDP.
Oil and Natural Gas can each be used as a source of energy and are, for many purposes interchangeable. Which of the following best explains the increase in the price of natural gas that accompanied the increase in the price of oil during the 1990-1991 Persian Gulf War?
a. Increased oil prices raised demand for natural gas, a substitute good. b. Increased oil prices raised the quantity demanded of natural gas by movement along the natural gas demand curve. c. Increased oil prices reduced supply of natural gas, a substitute good. d. Increased oil prices reduced supply of natural gas, an alternate good. e. Increased oil prices raised supply of natural gas, a substitute good.
A bank has $50,000 in excess reserves and the required reserve ratio is 10 percent. This means the bank could have __________ in checkable deposit liabilities and __________ in (total) reserves
A) $500,000; $90,000 B) $100,000; $20,000 C) $50,000; $25,000 D) $250,000; $75,000
If France has a trade deficit, then
A. imports into France exceed exports from France. B. exports from France exceed imports into France. C. imports into France from the United States exceed exports from France into the United States. D. imports into the United States from France exceed exports from the United States into France.