If government expenditure on goods and services increase by $10 billion, then aggregate demand

A) increases by $10 billion.
B) increases by $10 billion multiplied by the government expenditure multiplier.
C) decreases by $10 billion multiplied by the government expenditure multiplier.
D) decreases by $10 billion.
E) increases by $10 billion multiplied by the tax multiplier.


B

Economics

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Consider a game of the "Jack and Jill" type in which a market is a duopoly and each firm decides to produce either a "high" quantity of output or a "low" quantity of output. If the two firms successfully reach and maintain the cooperative outcome of the game, then

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Twenty years ago, Dr. Montgomery borrowed money from her parents to pay her tuition at graduate school. Now she wants to pay them back. She gives them double what they gave her. According to the rule of 70, what interest rate would have given her parents the same amount of money if they had put it in the bank rather than lending it to their daughter?

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Economics

When computing the opportunity cost of attending a basketball game you should include

a. the price you pay for the ticket and the value of your time.
b. the price you pay for the ticket, but not the value of your time.
c. the value of your time, but not the price you pay for the ticket.
d. neither the price of the ticket nor the value of your time.

Economics