If taxes depend on income and the MPC is 0.6 and t is 0.3, the tax multiplier is
A. -1.03.
B. -1.72.
C. -2.0.
D. -2.24.
Answer: A
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Which of the following is the largest component of national income?
A) net interest B) compensation of employees by firms C) corporate profits D) rental income
A temporary decrease in government purchases in the classical model would
A) shift the production function to the left. B) shift the marginal product of labor curve to the right. C) shift the labor demand curve to the left. D) shift the labor supply curve to the left.
Suppose the required reserve ratio is 8%, excess reserve-to-deposit ratio is 2%, and the currency-to-deposit ratio is 10%. What is the value of the money multiplier?
What will be an ideal response?
If High Tech Tablets brings a new personal tablet at a price of $200 for the first three months and then reduces the price of the tablet to $125, this is an example of ________.
A) first-degree price discrimination B) arbitrage C) market segmentation D) second-degree price discrimination