What is the impact of a $10 billion tax cut on consumer spending, if MPC is equal to 0.8?
a. $50 billion
b. $40 billion
c. $10 billion
d. $20 billion
b
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If the firm in the graph were producing Q2 and charging P2, it:
These are the cost and revenue curves associated with a firm.
A. represents the perfectly competitive outcome.
B. is an efficient outcome.
C. is an outcome that eliminates deadweight loss.
D. All of these statements are true.
Everyone in the neighborhood has been complaining about the deteriorating condition of the park, but nobody has cleaned it up. Why not?
A. There is an excess demand for parks in the neighborhood. B. No single person's benefit from cleaning the park exceeds that person's cost of cleaning it. C. The social benefit of cleaning the park exceeds the social cost of cleaning it. D. There is an excess supply of parks in the neighborhood.
Even when faced with a relatively powerful seller, some buyers can still exert bargaining power.
Answer the following statement true (T) or false (F)
Suppose that there are two goods that a small island nation can produce – coconuts and breadfruit
If the inputs for both goods are perfectly interchangeable and there is never a rise or fall in opportunity cost explain what the production possibilities frontier should look like and why.