If the MPC changed from 0.8 to 0.6, then the spending multiplier would change from
a. 5 to 2.5
b. 2.5 to 5.
c. 0.8 to 0.6.
d. 8 to 6.
a
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RBC theorists claim that adverse supply shocks can take forms other than rising raw materials prices. One such shock comes from government policy:
A) reductions in government expenditure. B) increases in tax rates. C) more rigorous environmental regulation. D) reductions in the money growth rate.
Using the supply and demand equations for wheat, solve for the equilibrium price and quantity as functions of I and r
What will be an ideal response?
What was not a benefit of the development of a national market?
a. Increased production by reducing tragedy of the commons problems. b. Permitted greater division of labor. c. Enabled people and organizations to engage more in their comparative advantages. d. Led to lower costs because of increasing returns to scale could be taken advantage of in more industries.
Prior to 1840, most businesses were
A) family-owned. B) corporate in structure. C) vertically integrated. D) collections of partnerships.