Do policy makers know the exact value of the fiscal multiplier?
A. No, economists have almost no idea of the value of fiscal multipliers.
B. No, they are not known with complete accuracy.
C. Yes, economists know the precise value of the multiplier.
D. Yes, although there is a very small range of uncertainty in the value.
Answer: B
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Which of the following tend to gain when inflation exists?
(a) Savers. (b) Those investing in cash. (c) Those on fixed incomes. (d) Borrowers.
According to Keynes, lengthy recessions can occur because
A. nominal wages fall rapidly when there is a decrease in aggregate demand, which leaves workers with less income to spend. B. the stock market tends to overreact to economic forecasts. C. there is significant downward rigidity in prices and wages. D. None of the choices are correct.
Which of the following is considered a renewable natural resource?
A. Aquifers. B. Coal. C. Petroleum. D. Iron.
In an industry with network effects and differentiated products, it is possible for the industry to become an oligopoly if
A. a few firms reap most of the sales gains resulting from positive market feedback. B. they engage in a zero-sum game. C. they use a kinked demand curve model. D. they use a price-leadership model.