If the MPC is 0, then the multiplier is
a. 0.
b. 1.
c. infinite.
d. None of the above is correct.
b
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An example of someone bearing the burden of a negative consumption externality would be
A) Taylor living downwind from a feedlot. B) LaShawn grows beautiful roses in her garden. C) Jess's roommate smokes and she doesn't. D) All of these are examples of someone bearing the burden of a negative consumption externality. E) None of these is an example of someone bearing the burden of a negative consumption externality.
Which of the following is not a result of imposing a rent ceiling?
A) There is a reduction in the quantity of apartments supplied. B) The marginal benefit of the last apartment rented is greater than the marginal cost of supplying it. C) There is an increase in the quantity of apartments demanded. D) Some consumer surplus is converted to producer surplus.
Draw two SP curves intersecting LP; call the upper intersection point A and the lower point B. The Fed promises to reduce inflation while maintaining natural unemployment. If the public believes the Fed, the economy moves from ________
Then if the Fed turns out to be time-inconsistent, breaking its promise and trading off ________ inflation for lower unemployment, the public revises the way it forms inflation expectations so that in the long run the economy stays at ________. A) A to B, lower, B which is superior to A B) A to B, higher, A which is inferior to B C) A to B, lower, A which is superior to B D) B to A, higher, B which is superior to A E) B to A, lower, B which is inferior to A
The price elasticity of demand for higher education is about 1.4. A 5% increase in tuition would lead to:
A. a decrease in enrollment by 7%. B. a decrease in enrollment by 6.4%. C. a decrease in enrollment by 3.6%. D. a decrease in enrollment by 2.8%.