In the traditional Keynesian model, an increase in government spending
A. causes no change in the C + I + G + X line.
B. causes the C + I + G + X line to shift upward by the full amount of the increase in government spending.
C. causes the C + I + G + X line to shift upward by more than the increase in government spending.
D. causes the C + I + G + X line to shift upward by an amount less than the increase in government spending.
Answer: B
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Answer the following statements true (T) or false (F)
1. To calculate the rate of return on a particular bond, multiply the coupon rate by the interest rate, then add the result to the face value of the bond. 2. Equity is the monetary value that would remain after a house is sold and any bank loans repaid. 3. Accumulating hundreds of thousands of dollars by retirement is not an achievable goal even for a well-educated person who starts saving early in life. 4. Firms make and sell an astonishing array of goods and services, and an investor can receive a return on the company’s decisions by buying stock in that company. 5. In recent years, laws have been enacted in many states to discourage citizens from voting, rather than making it easier for them to vote.
Which of the following goods is given in the textbook as an example of a good whose price is subject to volume discounts?
A. Electricity B. Pizza C. Gasoline D. Yogurt
For which of the following products would you expect the index of intra-industry trade to be lowest?
a. golf clubs b. automobiles c. whiskey d. natural gas
Exhibit 1A-7 Straight line relationship
According to Exhibit 1A-7, the relationship between annual income and air-travel expenditures is:
A. direct. B. inverse. C. complex. D. independent.