If the government wishes to increase GDP by $1,000b, and the MPC is 0.6, it should increase its spending by:
A. $400b.
B. $1,000b.
C. $600b.
D. $250b.
Answer: A
You might also like to view...
An omitted variable is a variable that:
A) is purposely left out as it does not aid an economic analysis. B) does not cause other variables in a study to change when it changes. C) is removed from a study as it can lead to the problem of reverse causality. D) has been left out, and if included, would explain why the variables considered in a study are correlated.
The long-run aggregate supply curve is vertical at $16 trillion but the short-run aggregate supply curve intersects the aggregate demand curve at $17 trillion. We know that
A) the economy is producing below full employment in the short run, and will adjust by hiring more workers, thus decreasing unemployment. B) the price level is too high. The long-run equilibrium will occur with a lower price level. C) adjustments will occur so that the long-run aggregate supply equals $17 trillion. D) adjustments will occur so that the short-run aggregate supply eventually intersects the aggregate demand curve at $16 trillion.
Julie is the chief executive officer (CEO) of the Black Gold Corporation and is also on the company's board of directors. Julie is considered ________ of the corporation
A) an outside director B) a stockholder C) an owner D) an inside director
Assume that a no-load open-end mutual fund holds securities with a total market value of $12 million, has no liability, and has 500,000 shares outstanding. The net asset value par share of this fund is
A) $24. B) $60. C) $24 million. D) $60 million.