If $30 billion in new investment is added to the economy and MPC is 0.9, national income would increase by
a. $30 billion
b. $90 billion
c. $100 billion
d. $210 billion
e. $300 billion
E
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In the shareholder wealth maximization model, the value of a firm's stock is equal to the present value of all expected future ____ discounted at the stockholders' required rate of return
a. profits (cash flows) b. revenues c. outlays d. costs e. investments
The money multiplier is much lower today than it was twenty-five years ago because:
A. people are holding less currency today. B. credit cards are more widely used. C. there is less currency available today. D. the currency-to-deposit ratio is much higher today.
If a boxing fight is shown on pay-per-view television every Saturday at 4pm, the demand curve for each fight is given below.
If there is a pay-per-view charge to watch a fight, the outcome is ________ because ________.
A. inefficient; the marginal cost of an additional viewing household is zero B. efficient; prices will allocate the program to those who value it the most C. inefficient; television stations would not always make a profit D. efficient; the marginal cost of an additional viewing household is zero
Which of the following is NOT a macroeconomic question?
A. Should we have a constitutional amendment requiring the federal government to balance the budget each year? B. Should restaurants be required to list the number of calories for each product on their menus? C. How does a fiscal stimulus package affect gross domestic product? D. Should Congress enact tougher immigration laws to reduce unemployment?