If the marginal propensity to save is 0.20, then the value of the tax multiplier is
A) -5. B) -4. C) 5. D) 1.2.
B
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Which of the following statements is true?
A) Firms normally prefer wage cuts over lay-offs. B) Cuts in wages boost worker morale. C) Workers normally resist increases in wages. D) Wage rigidity can cause unemployment.
The difference between cost-of-service regulation and rate-of-return regulation is that
A) the former sets prices based on actual costs, and the latter focuses on setting prices such that the firm earns a normal rate of return. B) the latter sets prices first, and then the firm must keep costs in line if it wants to earn a profit, and the former sets price high enough to cover costs. C) the former uses marginal cost pricing and the latter uses average cost pricing. D) the former uses average cost pricing and the latter uses marginal cost pricing.
During the period _____, the short-run Phillips curve for the United States was farthest from the origin
a. 1960 to 1964 b. 1964 to 1969 c. 1970 to 1973 d. 1974 to 1983 e. 1984 to 1989
The deteriorating-terms-of-trade argument has been used to justify import-substitution policies
a. True b. False Indicate whether the statement is true or false