If the marginal propensity to save (MPS) is 0.25, the value of the spending multiplier is:
a. 1.
b. 2.
c. 4.
d. 9.
c
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The real business cycle model focuses on how
A) the labor theory of value is the best measure of value of a good or service. B) productivity shocks explain fluctuations in real GDP. C) wage and price stickiness explains fluctuations in real GDP. D) the Federal Reserve should adopt a monetary growth rule.
The proposed merger between Staples and Office Depot and the FTC's opposition to it underscore the importance of how a market is defined when assessing the amount of market power possessed by an individual firm
Indicate whether the statement is true or false
Asymmetric information is a situation in which ________ parties to a transaction have relevant private information that is ________ to the other parties.
A) all; unknown B) some; unknown C) some; known D) all; known
5. When does equilibrium occur?
a. when quantity supplied equals quantity demanded b. when demand equals supply c. when consumers buy as much of the good as they want d. when suppliers sell as much of the good as they want