In general, autonomous spending increases have a lower multiplier effect on real GDP when the economy is open to international trade
a. True
b. False
Indicate whether the statement is true or false
True
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If an individual borrows $100 at an annual rate of interest of 5%, how much interest will he have to pay at the end of a year?
A) $20 B) $10 C) $50 D) $5
If there are open first-class seats available on a particular flight, some airlines allow customers with coach (discount) tickets to upgrade to first-class tickets during the electronic check-in process
Suppose the regular price of a first-class ticket is $800, the total price of the upgrade ticket (original price plus the upgrade) is $400, the marginal cost of serving both types of customers (full-fare and upgrade first-class flyers) is $100, and the airline maximizes profits. Which of the following statements is true? A) MR for the full-fare customers must be higher than the MR from upgrade customers. B) MR for the full-fare customers may be higher or lower than the MR from upgrades. C) MR = MC for the full-fare customers, but the airline is willing to collect any positive amount from the upgrade customers. D) MR must be the same for both full-fare and upgrade customers.
Holding other things constant, decreases in the price level in the US will
a. Cause the dollar to gain value b. Cause the dollar to lose value c. Does not affect the dollar value d. None of the above
The lag between the time at which a policy is put in place and the time that policy affects the economy is called
A) the recognition lag. B) the impact lag. C) the implementation lag. D) the theoretical lag.