The simplified spending multiplier is calculated as:
A. ?MPC/(1 ? MPC).
B. (1 ? MPC) × ?MPC.
C. 1/(1 ? MPC).
D. ?1/(1 ? MPC).
Answer: C
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Which of the following statements about international trade is true?
A) Potentially, a country can have absolute advantage in all goods. B) Potentially, a country can have relative advantage in all goods. C) After trade, countries tend to specialize in the production of those goods in which they enjoy absolute advantage. D) None of the above is true.
Of the three types of price-discrimination, which is impossible to practice in any market in reality?
A) first-degree price discrimination B) zero-degree price discrimination C) third-degree price discrimination D) second-degree price discrimination
If an investor had a $25,000 long-term capital gain on a $100,000 investment from 1984 to 2010, her real rate of return was most likely
a. equal to the expected rate of inflation. b. equal to the nominal rate of inflation. c. zero. d. negative.
Sticky prices in oligopoly markets are
A. represented by the kinked demand curve model. B. typical of cartels. C. most common for highly differentiated products. D. a result of price discrimination.