The multiplier for government spending is the same as the
A) multiplier for autonomous consumption. B) marginal propensity to save.
C) marginal propensity to import. D) tax multiplier.
A
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A tax and a regulation that have the same effect on output in the short run will have different effects in the long run. _____ creates profits which encourages _____, while _____ creates losses and encourages _____
a. Corrective taxation; entry; regulation; exit b. Regulation; entry; corrective taxation; exit c. Corrective taxation; exit; regulation; entry d. Regulation; exit; corrective taxation; entry
Which of the following shows the effect of a union on wages?
a. Angelina’s salary and sales commission totaled about the same as her husband’s union manufacturing pay. b. A training specialist, Ruby, found no difference in pay whether she worked in a union or nonunion position. c. Hector’s nonunion assembly line job paid $5.00 less per hour than when he did the same work in a union shop. d. A security worker, Kalen, was looking for a job in the nonunion sector where he could get more pay.
Figure 10-18
Based on , when the aggregate demand curve is in the position AD1, the economy's position of long-run equilibrium corresponds to point
a.
E1.
b.
E2.
c.
E3.
d.
E1 or E2.
A stock has a current annual dividend of $6.00 per year and it is expected to grow by 3% (0.03) a year. It is expected that two years from now the stock will sell for $90.00 a share. If the interest rate is 5% (0.05), the dividend-discount model predicts the stock's current price should be:
A. $101.30 B. $94.30 C. $94.90 D. $93.29