If an increase in investment of $50 causes an increase in real GDP of $250, the value of the spending multiplier is:
a. 5.
b. .20.
c. .80.
d. 3.
e. 10.
a
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The extent to which investment spending changes with changes to income is called the:
A) marginal propensity to consume. B) marginal propensity to save. C) marginal propensity to import. D) marginal propensity to invest.
Other things the same, if the Fed increases the rate at which it increases the money supply then the short-run Phillips curve shifts right in the long run
a. True b. False Indicate whether the statement is true or false
The Social Security system was founded
A) during the Civil War, to pay pensions for veterans. B) during the last years of the nineteenth century, as people who had once depended on having a family farm found themselves without a means of support. C) as the United States began to recover from the Great Depression. D) in response to concerns that arose during the high inflation of the 1970s.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point A to Point B, ________ additional OLED TVs could be produced when the production of LCD TVs is reduced by 30.
A. exactly 20 B. more than 20 C. fewer than 20 D. exactly 90