A marginal propensity to save (MPS) of 0.25 means a $50 million tax cut ultimately
A. Increases spending by $400 million.
B. Increases spending by $200 million.
C. Increases spending by $150 million.
D. Reduces spending by $50 million.
Answer: C
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Economists Leigh Linden and Jonah Rockoff researched the effect of the proximity of the residences of registered sex offenders to the values of other homes in the same area and found that the effects of having a sex offender in the neighborhood
A) are widespread and tend to remain unchanged with distance. B) are virtually nonexistent. C) reduce the average home value in the area by 50 percent. D) are highly localized and diminish rapidly with distance.
Why isn't slope as useful as elasticity to measure the responsiveness of one variable to another?
What will be an ideal response?
Which of the following is a belief of the monetarists?
A. They think the Great Depression was made worse by poor conduct of monetary policy. B. They believe monetary policy is transmitted to the economy only through its effect on interest rates and planned investment. C. They believe that the interest-investment curve is horizontal. D. They believe the crowding-out effect is insignificant.
Explain each of the determinants of the present value of expected profits from a buying a new machine
What will be an ideal response?