the multiplier is a value between zero and one

a. true
b. false


b. false

Economics

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Personal disposable income is pre-tax income that flows directly to households

Indicate whether the statement is true or false

Economics

Explain what happens to inflation during the business cycle. Give an intuitive explanation as to why inflation changes the way it does over the business cycle

What will be an ideal response?

Economics

If the price level in the United States is 110, the price level is 135 in Mexico, and the nominal exchange rate is 12.5 pesos per dollar, what is the real exchange rate from the U.S. perspective?

A) 8.8 B) 10.2 C) 10.8 D) 11.4

Economics

In the Brander-Spencer model the subsidy raises profits by more than the subsidy because of

A) the "multiplier" effect of government expenditures. B) the military-industrial complex. C) the forward and backward linkage effects of certain industries. D) the deterrent effect of the subsidy on foreign competition. E) the economies of scale once the company enters the market.

Economics