Which of the following factors has the most quantitative importance on the oversimplified multiplier formula?
A. It ignores variable imports.
B. It ignores price-level changes.
C. It ignores income taxes.
D. All of these equally affect the oversimplified multiplier formula.
Answer: C
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An increase in input prices will cause the aggregate supply curve to shift rightward
a. True b. False Indicate whether the statement is true or false
How can governments intervene in trade?
A. by producing cheaper products B. by helping reduce economic uncertainty C. by not buying products from competing countries D. All of these
Which of the following is an accurate statement about universal banks?
A. As in Germany, universal banks in the United States do everything under one roof, including direct investment in the shares of nonfinancial firms. B. Universal banks in the United States account for the largest share of financial intermediary assets. C. In Germany the provision of insurance, banking, and securities must be done by separate corporations. D. In Germany universal banks do everything under one roof, including direct investment in the shares of nonfinancial firms.
Why do firms engage in the activity of production?
A. to acquire profits B. to help society advance technologically C. to develop a supply schedule D. to participate in the circular flow