In the simple Keynesian model, government spending
a. have a smaller multiplier than tax changes.
b. can have a larger or smaller multiplier depending upon monetary policy
c. have the same multiplier as changes in taxes.
d. have a greater multiplier than tax changes.
D
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The expected value of litigation is the expected value of the gain from litigation for the ________ and the expected value of the loss from the litigation for the ________.
A) defendant; plaintiff B) plaintiff; defendant C) defendant; defendant D) plaintiff; plaintiff
An economic system in which money is not used is a:
A. mixed economy. B. barter economy. C. planned economy. D. market economy.
According to some supporters of the minimum wage, it has very small or even nonexistent negative employment effects because:
A. the demand for minimum wage labor is highly elastic. B. it reduces turnover among minimum wage workers, prompts employers to use them more efficiently, and thus raises their average productivity. C. it encourages teenagers to stay in school. D. employers substitute lower fringe benefits for higher pay, keeping their compensation costs the same.
Economic growth depends on
A. increases in the capital stock as a result of saving. B. high rates of consumption. C. high government spending. D. low tax rates.