In the simple Keynesian model, if there is an autonomous investment falls by $20 billion and the MPC (b) is 0.60, the equilibrium income level will increase by
a. $13.3 billion.
b. $20 billion.
c. $50 billion.
d. $100 billion.
C
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Suppose you drive a car that gets good gas mileage, and you notice that more and more people are driving gas-guzzling cars. Their increased demand for gas:
A. does not affect you. B. does not change the price you pay, but it reduces the quantity of gas supplied. C. is likely to cause the price you pay for gas to decrease. D. it likely to cause the price you pay for gas to increase.
Which of the following is not an advantage of starting a new business as a partnership?
A) The owners have complete control over the business. B) A partnership can easily attain additional funding. C) A partnership has few government rules and regulations to comply with. D) Business profits are only taxed once, not twice.
Which statement is true about the rate of inflation?
A. it was higher in the 1960s than in the 1970s. B. it was higher in the 1970s than in the 1960s. C. it was about the same in the 1960s as in the 1970s.
Redistribution of wealth is a microeconomic effect of inflation.
Answer the following statement true (T) or false (F)