The simple Keynesian model
a. overstated the effect of an increase in government spending by neglecting the necessary increase in the interest rate and consequent decline in investment that accompany an increase in government spending.
b. understated the effect of an increase in government spending by neglecting the necessary increase in the interest rate and consequent decline in investment that accompany an increase in government spending.
c. overstated the effect of an increase in government spending by neglecting the necessary decrease in the interest rate and consequent increase in investment that accompany a decrease in government spending.
d. understated the effect of an increase in government spending by neglecting the necessary decrease in the interest rate and consequent decrease in investment that accompany an increase in government spending.
A
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GDP consistently measures the output of goods and services in all countries
a. True b. False Indicate whether the statement is true or false
We will keep buying digital music downloads from the Internet until the marginal utility of the music downloads
A. rises to the price of the download. B. falls to the price of the download. C. is greater than the price of the download. D. is less than the price of the download.
Is price discrimination always legal in the United States?
A. No, while price discrimination is legal throughout the country, it is not allowed if it is used to drive rivals out of business. B. Yes, a firm can price discriminate as long as it benefits them. C. No, price discrimination is discrimination, and its practice is never allowed in the United States. D. No, price discrimination is not legal in some states like California and Nebraska.
Under a gold standard, a discovery of gold will
A. decrease the general price level. B. increase the general price level. C. cause increased unemployment. D. cause decreased rates of economic growth.