The U.S. government acts as a lender of last resort to commercial banks
Indicate whether the statement is true or false
false
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Assume a closed economy, that taxes are fixed, and the marginal propensity to consume is equal to 0.8. What is the government spending multiplier?
A) 10 B) 5 C) 4 D) 3
Which of the following statements best describes the changes in federal spending of the US economy from 1939 to 1949?
a. Between 1939 and 1944 military expenditures increased substantially and civilian-related expenditures remained about the same. b. Between 1939 and 1944 both military and civilian-related expenditures increased substantially. c. Between 1939 and 1944 the production possibilities frontier for military and civilian-related expenditures shifted out. d. Between 1944 and 1949 military expenditures decreased substantially and civilian-related expenditures returned to 1939 levels.
Explain how a perfectly competitive market promotes productive efficiency (minimum average costs).
What will be an ideal response?
Assuming the market is in equilibrium in the graph shown with demand D and supply S2 at a quantity of 8, producer surplus is:
A. less than the consumer surplus. B. 28 C. $32. D. 16