If the MPC is .67, then the oversimplified multiplier is
a. 7.60.
b. 6.70.
c. 3.00.
d. 33.
c
You might also like to view...
Firms that expend resources for lobbying that could have been used for productive services are engaging in rent-seeking behavior.
Answer the following statement true (T) or false (F)
A country's financial account balance decreases if
A) its current account balance increases. B) its income payment inflows on foreign assets decrease. C) its domestic residents working abroad reduce the income they send home to their families. D) foreigners increase their purchases of its existing assets.
When the Fed tightens U.S. monetary policy, domestic interest rates ________, making U.S. assets relatively more attractive to foreign investors, and ________ the equilibrium exchange rate.
A. fall; increasing B. fall; decreasing C. rise; increasing D. rise; decreasing
Fast Food Terminals Taco Casa is considering installing touch screen terminals for patrons to place their food orders. They discovered that installation costs at stores with four screens were $60,000 but were $80,000 at stores with six terminals. What are the marginal costs of installing another terminal at a location?