Suppose that the value of the multiplier has decreased in recent years. Which of the following could have caused this?
A. The costs of inventory storage have risen.
B. Changes in the way the unemployment compensation fund is financed have made it less expensive for firms to lay off workers.
C. Consumption has become less sensitive to changes in the interest rate.
D. There has been an increase in the demand for imported goods.
Answer: D
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Under which chair did the Fed implement the policy of inflation targeting?
A) Volcker B) Bernanke C) Greenspan D) Geithner
If an economy's consumption spending is $5 trillion, investment is $2 trillion, government spending is $1 trillion, net taxes are $1 trillion and household saving is $2 trillion, total income is
a. $3 trillion b. $5 trillion c. $7 trillion d. $8 trillion e. $11 trillion
The manufacturer of Beanie Baby dolls used quarterly price data for 2005 I - 2013 IV (t = 1, ..., 36) and the regression equationPt = a + bt + c1D1t + c2D2t + c3D3tto forecast doll prices in the year 2014. Pt is the quarterly price of dolls, and D1t, D2t, and D3t are dummy variables for quarters I, II, and III, respectively. At the 2 percent level of statistical significance, is there a statistically significant trend in the price of dolls?
A. Yes, because 3.33 > 0.02. B. Yes, because 0.800 > 0.02. C. Yes, because 0.0022 < 0.02. D. No, because 0.0022 > 0.02. E. Yes, because 0.240 > 0.02.
Prices in oligopolistic industries are predicted to fluctuate widely and frequently compared to other market structures.
Answer the following statement true (T) or false (F)