If net taxes increase by $100 billion and the marginal propensity to consume is 0.6, by how much will GDP change?
a. -$250 billion
b. $150 billion
c. $250 billion
d. -$100 billion
e. -$150 billion
E
Economics
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Checking exchange rates, you find $1 equals 0.75 euros. Then the price of 1 euro is
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The slope of a vertical straight line is infinity
a. True b. False
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Recall the Application about declining U.S. labor force participation rate since 1999 to answer the following question(s). According to this Application, one explanation for the decline in the U.S. labor force participation rate since 1999 is:
A. higher college enrollment. B. the increase in foreign ownership of U.S.-based companies. C. sluggish economic growth that resulted in more discouraged workers. D. the growing number of workers who have postponed retirement.
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