The IS curve would be vertical if
A) the government's budget was balanced.
B) autonomous expenditures were insensitive to the interest rate.
C) the demand for money was insensitive to the interest rate.
D) the government increased the money supply.
B
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If the marginal propensity to consume (MPC) is 0.8, the multiplier is
A) 0.8. B) 5.0. C) 1.2. D) 0.2.
The goods and services that count toward GDP are defined in terms of:
A. the location of production, not the citizenship of the producer. B. the citizenship of the producer, not the location of production. C. citizens producing within a country's borders. D. total production of companies owned by citizens, regardless of the actual location of production.
Cash payments that companies make to shareholders are called
a. annuities. b. dividends. c. premiums. d. favorables.
Firms who effectively differentiate their product from their competitors' products do so by having:
A. perceived, but not real, differences in product design. B. real, not just perceived, differences in product design. C. real or perceived differences in product design. D. None of these statements is true.