The MPC is 0.90 and there are no income taxes or imports. If government expenditures on goods and services increases by $2.0 billion, after the multiplier effect works out, aggregate expenditure increases by
A) $2.22 billion. B) $2.0 billion. C) $10 billion. D) $20 billion. E) $1.8 billion.
D
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What is an efficient way to study for an economics exam?
A) Attend every lecture and take copious notes. B) Read the assigned material once before each class and once after. C) Form study sessions with others in class. D) Put off everything and instead cram the night before the exam. E) Any of the above might be efficient, depending on one's perceived costs and benefits.
When OPEC raised the price of oil, it created a:
a. demand-pull inflation. b. cost-push inflation. c. demand-push inflation. d. cost-pull inflation. e. cost-push deflation.
If we know that the exchange rate is $1.60 per pound then the exchange rate of pounds per dollar is
a. greater than 1.60 b. 0.80 c. 1.00 d. 0.625 e. 1.60
Members of IGA are advised by that organization to
A. hire less-qualified people to keep costs down. B. provide a level of service, community involvement, and types of goods Walmart does not. C. "out Walmart" Walmart by lowering prices. D. sell exactly the same goods Walmart does.