If MPC = 0.75 (and there are no income taxes) when G increases by 100, then the IS curve for any given interest rate shifts to the right by:
What will be an ideal response?
400
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In the figure above, at the point where the price is $60 per bunch, the price elasticity of supply is
A) 1.8 B) 0.56 C) 1 D) 1.5 E) 0
A negative externality is internalized when __________ until the socially optimum level of production is obtained.
A. supply shifts to the left B. supply shifts to the right C. demand shifts to the right D. b and c E. none of the above
New loans create money directly, but they also create excess reserves in other banks, which leads to still further increases in both loans and the supply of money
a. True b. False Indicate whether the statement is true or false
If revenues are greater than total variable costs of production but less than total costs, a firm
A. earns a profit. B. shuts down. C. suffers a loss. D. breaks even.