Refer to the accompanying figure.
Based on the figure, the income-expenditure multiplier equals:
A. 0.5.
B. 2.
C. 200.
D. 5.
Answer: B
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According to the Application, what advantages occur as a result of granting ownership of a dwelling to its occupant?
A) increased incentives for property maintenance B) potential increase in the market value of the property C) increased investment in housing repairs D) all of the above
When the economy's actual price level exceeds the expected price level in the short run: a. the real wages of workers decline
b. the nominal wages of workers increase. c. firms decrease output below the potential level. d. the economy produces the natural rate of output. e. cyclical unemployment in the economy falls to zero.
Supply-side economists emphasize the importance of saving to finance investment.
Answer the following statement true (T) or false (F)
A company currently pays a dividend of $4.00 per share. It expects the growth rate of the dividend to be 3% (0.03) annually. If the interest rate is 6% (0.06) what does the dividend- discount model predict the current price of the stock should be?
A. $ 137.33 B. $103.33 C. $66.67 D. it doesn't, you need an expected future selling price to use the model.