The greater the marginal propensity to import, the
A. smaller is the level of consumption.
B. greater is the net export.
C. greater the level of investment.
D. smaller the spending multiplier.
Answer: D
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The following payoff matrix shows the outcomes for the United States and Russia from relying on conventional weapons versus atomic weapons in a military conflict. The percentages refer to the fraction of the population that would die.
For the US, the dominant strategy is to have ________, and for Russia, the dominant strategy is to have ________.
A. conventional weapons; conventional weapons B. atomic weapons; atomic weapons C. conventional weapons; atomic weapons D. atomic weapons; conventional weapons
To find economic profit from accounting profit, it is necessary to
A. add retained earnings. B. add depreciation expense. C. add revenues that the firm can never earn. D. subtract the opportunity cost of capital.
During the Great Recession of 2007-2009, the investment demand curve shifted:
A. Left because of very low interest rates B. Right because of very low interest rates C. Left because of declines in expected returns D. Right because of reductions in tax rates
The U.S. dollar is called
A) frail money because wear and tear ruins paper bills. B) convertible money because the government stands ready to convert it into gold or silver. C) fiat money because the law decrees it is money. D) faith money. E) commodity money, because it is convertible into gold.