The formula to compute the spending multiplier is:
A. 1 / (MPC + MPS).
B. 1 / (1 ? MPC).
C. 1 / (1 ? MPS).
D. 1 / (C + I).
Answer: B
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Samuel Gompers is most recognized for:
a. the invention of air brakes for trains. b. his role as an early union leader. c. invention of a steel manufacturing process. d. the development of refrigerated train cars.
When box office receipts are not corrected for inflation,
a. The Sound of Music ranks as the most popular movie of all time. b. Gone with the Wind does not rank as one of the 50 most popular movies of all time. c. Titanic ranks as the most popular movie of all time. d. Avatar does not rank as one of the 50 most popular movies of all time.
The J-curve effect in reference to the trade balance may persist:
a. for up to one year after the depreciation. b. permanently. c. for a few weeks only. d. for up to 10 years after the depreciation.
When the demand for a good is price-elastic at a given output level:
A. total revenue is negative. B. total revenue for the good will increase if its price decreases. C. a large change in price will result in a relatively small change in the quantity demanded. D. an increase in price will lead to an increase in total revenue for firms selling the good.