If R is the reserve ratio, then the money multiplier is given by 1 / (1+R).
Answer the following statement true (T) or false (F)
False
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If depreciation is less than investment ________
A) capital per-worker is falling B) capital per-worker is rising C) capital per-worker is constant D) capital per worker is greater than saving
Keynes noted that that one solution to a recession was increased government spending, and while it would be nice if the government could spend additional money on housing, roads, and other amenities, he also argued that if the government could not agree on how to spend money in practical ways, then
a. it should not spend the additional money. b. a trade-off would appear. c. the Phillips curve would shift. d. it should spend in impractical ways.
If in a fiscal year, the outlays > incomes
What will be an ideal response?
Economists believe that people who force themselves to always eat everything on their plate at a restaurant, regardless of how full they might feel, likely do so because:
A. they include the sunk cost of their meals in making their decision. B. they gain negative utility from insulting the chef. C. they overvalue the opportunity costs of their health and time involved with eating food they don't really want. D. they undervalue the true benefit of eating too much.