If the government decreases spending and taxes by 1,000 units and the marginal propensity to consume is .9, then
a. more information is needed.
b. output will decrease by 900.
c. output will decrease by 10,000.
d. output will increase by 10,000.
C
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The Audubon Society currently allows three oil companies to extract natural gas on its Rainey Wildlife Sanctuary because
A) natural gas is more valuable than wildlife conservation. B) oil interests actually own the Audubon Society. C) the government required the leasing of natural gas rights under its power of eminent domain. D) the sanctuary must, by law, be used to promote the public interest. E) the sanctuary is the private property of the Audubon Society.
Political incumbents often gain or lose re-election because of a strong or weak economy. Which of the following is an exception to that rule?
A) Al Gore B) George H.W. Bush C) Jimmy Carter D) Herbert Hoover
If you invest $500 today, and the value one year from today is $1000, then the annual interest rate must be
A) 10%. B) 50%. C) 100%. D) 200%.
The expected value of litigation is the expected value of the gain from litigation for the ________ and the expected value of the loss from the litigation for the ________.
A) defendant; plaintiff B) plaintiff; defendant C) defendant; defendant D) plaintiff; plaintiff