If the marginal propensity to consume is 6/7, then the multiplier is 7
a. True
b. False
Indicate whether the statement is true or false
True
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Consider a large open economy that has a zero current account balance
What are the effects on the world real interest rate, national saving, investment, and the current account balance in equilibrium if (a) future income rises? (b) business taxes decline? (c) government purchases decline? (d) the future marginal product of capital declines?
Consider the same market for nonalcoholic beer as in the previous question. How many units will Boors produce in the Nash equilibrium?
a. 1,333 b. 2,333 c. 3,333 d. 4,333
A unique resource can serve as
A) an economic profit B) a sunk cost C) an entry barrier D) none of these choices
In what market are goods and services sold?
a. money market b. household market c. product market d. resource market e. consumer market