An economy is experiencing a high rate of inflation. The government wants to reduce aggregate demand by $36 billion to reduce inflationary pressure. The MPC is 0.75. By how much should the government raise taxes to achieve its objective?
A. $9 billion
B. $6 billion
C. $16 billion
D. $12 billion
Answer: D
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On a production possibilities frontier, 500 pounds of apples and 1,200 pounds of bananas can be produced while at another point on the same frontier, 300 pounds of apples and 1,300 pounds of bananas can be produced
Between these points, what is the opportunity cost of producing a pound of apples? A) 2 pounds of bananas B) 5/12 of a pound of bananas C) 0.5 of a pound of bananas D) 2 pounds of apples E) 100 pounds of bananas
Saving is a ________ variable, and wealth is a ________ variable
A) stock; flow B) stock; stock C) flow; flow D) flow; stock
The rule of 70 which predicts the time required for the economy of a nation to double, is based on the mechanism of: a. compound interest
b. capital formation. c. labor force productivity. d. capital investments.
The Darity-Myers thesis states that
A. he heritage of slavery is largely to blame for black poverty. B. welfare dependency creates a culture of poverty. C. black men have become less useful in the emerging economic order and have become marginalized. D. the root problem of black poverty is the high pregnancy rate of unmarried teenage girls.