Which of the following is true about the LM curve?
a. Along the LM curve, actual expenditure is equal to planned expenditure.
b. The LM curve slopes upward and is consistent with a given level of income.
c. The LM cuve slopes upward for a given level of the money supply.
d. The LM curve is horizontal in the classical model.
e. none of the above.
C
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Mr. Johnson earns $100,000 per year. Each year he spends $70,000 and saves $30,000. He pays 5 percent sales tax on all his spending. Assuming this is only tax he pays, his average tax rate out of his income is:
a) 5.0 percent b) 1.5 percent c) 3.5 percent d) 2.5 percent
Not counting _____ as unemployed understates unemployment
a. children b. retired persons c. students d. people who do not want to work e. discouraged workers
Market power and externalities are examples of market failures
a. True b. False Indicate whether the statement is true or false
Both external and internal factors affect the operation of a multinational enterprise (MNE). External factors are outside the immediate control of the firm while internal factors are within the control of the firm. Give examples for both and discuss how they would affect the operations of the MNE.
What will be an ideal response?