Find the tax multiplier if the MPC is 0.75
a. ?4.
b. ?3.
c. 0.33.
d. 3.
e. 4.
b
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Which of the following ideas of Adam Smith has religious overtones?
A. Comparative advantage B. Aggregate demand C. Perfect competition D. Rational expectations E. Invisible hand
Which of the following is a solution to the problem of moral hazard in the labor market?
A) Provision of real wages B) Provision of nominal wages C) Provision of efficiency wages D) Provision of minimum wages
Over the post-war era, poorer countries grew
A) faster. B) slower. C) stayed the same. D) grew faster, then grew slower. E) No general tendency can be found.
If the nominal money supply grows 10%, the inflation rate is 6%, and the income elasticity of money demand is 1.0, then real income growth equals
A) 1%. B) 2%. C) 3%. D) 4%.