Assume that the MPC is 0.80 and investment rises by $50 million. How much additional saving will this generate in the second round of spending?
a. $10 million
b. $40 million
c. $50 million
d. $62.5 million
e. $250 million
a
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The sentiment for increased deregulation in the late 1970's and early 1980's has been felt most significantly in the price regulation of
a. coal b. grain c. transportation d. automobiles e. electric power generation
Banks earn a profit on the difference between: a. the interest charged from depositors and the interest offered to borrowers. b. the interest charged on loans and the interest paid on deposits
c. the deposit and loan balances. d. liabilities and deposits. e. dividends and interest.
Microsoft sells a special version of its Windows operating system at a low price in countries where cheap pirated software is widespread. Since the cost of producing another copy of this software is the same as the cost of producing another copy of the regular Windows product, why is Microsoft charging this lower price?
A. It is trying to take advantage of the different demand elasticities in the different countries. B. The price differences are due to differences in cost among countries. C. The differential pricing reflects the differences in the barriers to entry. D. The price differential is explained by the lower cost to develop the new software.
Along the classical or vertical range of the aggregate supply curve, an increase in the aggregate demand curve will increase:
A. both the price level and real GDP. B. only real GDP. C. only the price level. D. real GDP and reduce the price level.