An expansionary fiscal policy will be effective only if the central bank of a country simultaneously prevents the market interest rate from rising
a. True
b. False
Indicate whether the statement is true or false
True
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Using the above table, at a price of $5 there will be a
A) shortage of 20 units. B) shortage of 10 units. C) surplus of 20 units. D) surplus of 10 units.
According to the absolute income hypothesis, the marginal propensity to consume
a. decreases as national income increases b. increases as national income increases c. is equal to one d. is constant as national income increases e. is equal to the marginal propensity to save
The opportunity cost of moving from point T to point Q would be
A. giving up trips around the world.
B. giving up heart transplants.
C. gaining trips around the world.
D. gaining heart transplants.
Assume that Sweden will specialize in either boats or cars. What is their opportunity cost of producing three cars?
