The multiplier effect of a tax cut is ______ the multiplier effect of an equal amount of government spending.
a. less than
b. the same as
c. a little more than
d. much more than
a. less than
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Frank Murphy is considering how many snowmobiles to purchase for his snowmobile rental business. Below are his estimates of the number of snowmobile rentals per year, depending on the number of snowmobiles available.Number ofSnowmobilesYearlyrentals1902170324043005350After paying all non-interest expenses, expenses Frank expects to net $10 per rental. Each snowmobile costs $15,000. How many snowmobiles should Frank purchase if the real interest rate is 5.5%?
A. 1. B. 0. C. 2. D. 4.
The total amount of consumer surplus in a market is equal to the area below the demand curve
Indicate whether the statement is true or false
An individual firm's best response:
A. is the firm's most profitable choice given the actions of its rivals. B. is not necessarily selected by all firms in a Nash equilibrium. C. is always the option with the highest price for each firm. D. is to set the same price and quantity as all of its rivals.
The liquidity preference function shows that as ________
A) real income decreases, so does the demand for real money balances B) the nominal interest rate increases, so does the demand for real money balances C) real income decreases, so does the real interest rate D) all of the above E) none of the above