If the MPC is 0.67, then the oversimplified multiplier is
A. 7.60.
B. 6.70.
C. 3.00.
D. 33
Answer: C
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Cigarette advertising on our nation's radio and television stations has been prohibited for more than the past three decades by federal law
What is curious about this law is that it came into being not just because of the lobbying efforts of American Medical Association but also by the tobacco industry. Use economic logic to explain this apparent paradox.
If fair insurance is offered to a risk-averse person, she will
A) buy enough insurance to eliminate all risk. B) not buy any insurance because it is overpriced. C) not buy any insurance since the marginal utility of the amount of the payment is positive. D) buy enough insurance to cover about half of the possible loss.
If the government were to increase income taxes, we would predict:
A. a downward movement along the aggregate demand curve. B. a shift in aggregate demand to the right. C. a shift in aggregate demand to the left. D. an upward movement along the aggregate demand.
Total spending will equal total output
a. after inventory adjustments b. only when total leakages are equal to total injections c. by the end of every year d. only when the sum of saving and investment equals the sum of net taxes and government expenditures e. saving is equal to net taxes