In a simple model of the economy, if the MPC is 0.8, the multiplier will equal
A) 0.2
B) 0.8
C) 1.25
D) 5
D
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Everything else remaining unchanged, what is likely to happen to the equilibrium real interest rate and quantity of credit if the credit supply curve shifts to the left?
A) Both equilibrium rate of interest and quantity of credit will increase. B) The equilibrium rate of interest will increase and the quantity of credit will decrease. C) Both equilibrium rate of interest and quantity of credit will decrease. D) The equilibrium rate of interest will decrease and the quantity of credit will increase.
The typical average cost curve
A. continually declines as output increases. B. is horizontal. C. continually increases as output increases. D. first declines to a minimum and then increases as output increases.
From the early 1860s to the early 1900s, the amount of land acquired by sales (including from railroads and states) was _____ land obtained free through homesteading
a. roughly half as much as b. about the same as c. twice as much as d. triple the amount of
If the price of sugar changed in the market from 20 cents to 23 cents per pound, and Sunharvest Grocery Market didn't change the price it charges for the sugar, this behavior is likely due to
A. irrational expectations. B. large menu costs. C. discretionary policy. D. small menu costs.