Refer to the table and information below. What is the total amount that the government should spend on construction projects?
A government is considering undertaking one or more construction projects. The estimated marginal costs and benefits of each project are given in the table.
A. $8 million
B. $14 million
C. $19 million
D. $37 million
C. $19 million
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Any change that reduces desired saving relative to desired investment (for a given level of output) causes the real interest rate to ________ and shifts the IS curve ________
A) increase; down and to the left B) increase; up and to the right C) decrease; down and to the left D) decrease; up and to the right
In a free market economy, the market clearing (equilibrium) price in the above table would adjust to
A) $1. B) $3. C) $4. D) $5.
The world bank is the agency of the U.S. State Department that is in charge of U.S. loans to foreign countries
a. True b. False Indicate whether the statement is true or false
In which of the following cases would there be an effect on the value of the U.S. consumer price index, but not on the value of the U.S. GDP deflator?
a. All of the truck tires that are produced by a certain company in South Korea are sold to the U.S. military, and the price of these tires decreases. b. All of the truck tires that are produced by a certain company in California are sold to the U.S. military, and the price of these tires decreases. c. Most of the bananas that are produced by a certain company in Honduras end up in U.S. grocery stores, and the price of these bananas increases. d. Most of the earth-moving machines that are produced by a certain company in Illinois are exported to other countries, and the price of these machines increases.