If a $50 billion initial increase in spending leads to a $250 billion change in real GDP, how big is the multiplier?
What will be an ideal response?
Answer: 5
Economics
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
Economics
What information do you need to draw your budget line? What is your budget line? What does it show for any pair of goods?
What will be an ideal response?
Economics
Given that shares are riskier than bonds, why do investors invest in equity?
What will be an ideal response?
Economics
When the Fed wants US interest rates to decrease, it will usually increase the discount rate
a. true b. false
Economics