The idea that a $1 increase in infrastructure spending will generate more than $1 in economic growth is a representation of:
A. the multiplier effect.
B. an outside lag.
C. an inside lag.
D. an automatic stabilizer.
Answer: A
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The short-run market demand schedule in perfect competition is positively sloped
a. True b. False Indicate whether the statement is true or false
Which of the following changes would increase the present value of a future payment?
a. a decrease in the size of the payment b. an increase in the time until the payment is made c. a decrease in the interest rate d. All of the above are correct.
If the real exchange rate between the U.S. and Argentina is 1, then
a. purchasing-power parity holds, and 1 U.S. dollar buys 1 Argentinean bolivar. b. purchasing-power parity holds, and the amount of dollars needed to buy goods in the U.S. is the same as the amount needed to buy enough Argentinean bolivars to buy the same goods in Argentina. c. purchasing-power parity does not hold, but 1 U.S. dollar buys 1 Argentinean bolivar. d. purchasing-power parity does not hold, but the amount of dollars needed to buy goods in the U.S. is the same as the amount needed to buy enough Argentinean bolivars to buy the same goods in Argentina.
In a Bertrand model of oligopoly:
A. firms produce differentiated products and set their prices simultaneously. B. firms produce homogenous products and set their prices simultaneously. C. firms choose how much to produce simultaneously and the price clears the market given the total quantity produced. D. firms choose how much to produce and the price to charge simultaneously.