The general formula for calculating the desired fiscal stimulus is
A. AD shortfall × the multiplier.
B. AD shortfall ÷ the multiplier.
C. 1/(AD shortfall ÷ the multiplier).
D. 1/(AD shortfall × the multiplier).
Answer: B
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The expected yield on an asset with two possible outcomes is equal to the
A) difference between the two outcomes. B) sum of the possible outcomes multiplied by their respective probabilities. C) standard deviation of the two outcomes. D) product of the two outcomes.
Average cost pricing is permitted
A. when a service is produced by a natural monopoly. B. when few firms have the incentive to provide a service. C. in price-taking markets. D. when firms exhibit diseconomies of scale.
In 2001, Spain was ________ percent poorer than Germany.
A. 10 B. 20 C. 25 D. 15
An increase in the discount rate ________ bank reserves and ________ the money supply if banks respond appropriately to the change in the rate
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases