If the multiplier is 5, the MPC is
A. .1.
B. .2.
C. .5.
D. .8.
D. .8.
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Emma uses a linear model to forecast quarterly same-store sales at the local Garden Center. The results of her multiple regression is: Sales = 2,800 + 200•T - 350•D where T goes from 1 to 16 for each quarter of the year from the first quarter of 2006 (‘06I) through the fourth quarter of 2009 (‘09 IV). D is a dummy variable which is 1 if sales are in the cold and dreary first quarter, and
zero otherwise, because the months of January, February, and March generate few sales at the Garden Center. Use this model to estimate sales in a store for the first quarter of 2010 in the 17th month; that is: {2010 I}. Emma's forecast should be: a. 5,950 b. 6,200 c. 6,350 d. 6,000 e. 5,850
A perfectly elastic demand curve is
a. a vertical straight line b. a horizontal straight line c. a downward-sloping straight line d. an upward-sloping straight line e. not a straight line
Many economists from both the Keynesian and neoclassical schools have found that the policies implemented to stabilize the economy and financial markets during the Great Recession:
a. were totally ineffective b. made the Great Recession worse. c. were effective, although to varying degrees. d. were totally effective.
The desire to have a relatively even pattern of consumption over time is known as
A. excess sensitivity. B. the consumption-smoothing motive. C. the substitution effect. D. forced saving.