If the marginal propensity to save is 0.2, what is the expenditure multiplier?
a. 0.8
b. 1.2
c. 2
d. 5
d. 5
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What type of statement is a prescriptive statement about how the world ought to be?
Two bonds have the same term to maturity. The first was issued by a state government and the probability of default is believed to be low. The other was issued by a corporation and the probability of default is believed to be high. Which of the following is correct?
a. Because they have the same term to maturity the interest rates should be the same. b. Because of the differences in tax treatment and credit risk, the state bond should have the higher interest rate. c. Because of the differences in tax treatment and credit risk, the corporate bond should have the higher interest rate. d. It is not possible to say if one bond has a higher interest rate than the other.
Look at the following data: Employed persons = 110 million; civilian labor force = 135 million persons; civilian noninstitutional population = 190 million. The unemployment rate is __________ percent and the employment rate is __________ percent
A) 10; 69 B) 8; 57.9 C) 18.5; 57.9 D) 18.5; 81.5 E) 12; 88
In 2004, hurricanes damaged a large portion of Florida's orange crop. As a result of this, many orange growers were not able to supply fruit to the market. If, following the hurricane, the price remained at its pre-hurricane level, we would expect to see
A) a surplus of oranges. B) the quantity demanded equal to the quantity supplied. C) a shortage of oranges. D) an increase in the demand for oranges.