Other things equal, a marginal propensity to import of 0.8 implies that a $100 million increase in domestic income will lead to an $80 million decrease in net exports
a. True
b. False
Indicate whether the statement is true or false
False
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If a company pays a dividend of $5 to be received one year from now, dividends are expected to grow at a rate of 8 percent per year for the indefinite future, and the interest rate is 14 percent,
the price of the company's stock should be ________ per share. A) $8.00 B) $83.33 C) $227.27 D) $610.00
Direct controls are generally much more costly than emissions taxes because
a. under direct controls emissions cutbacks are usually not apportioned among the firms on the basis of their ability to reduce pollution cheaply and efficiently. b. emissions tax per unit of output is higher than the per-unit direct control program cost. c. government cannot legally levy emissions taxes that are as high. d. firms disregard emissions taxes.
Which of the following examples would enhance the effectiveness of the Fed’s monetary policy?
a. The Fed wants an expansionary policy; the fiscal policy makers want to raise interest rates. b. The Fed wants a contractionary policy; the fiscal policy makers want to increase exports c. The Fed and fiscal policy makers advocate different ways to deal with a recession. d. The Fed and fiscal policy makers both prioritize curbing inflation.
During 2016, Yolanda's assets equal $400,000 and her liabilities were $550,000. Yolanda's net worth is
A. -$150,000. B. $150,000. C. $475,000. D. $950,000.