Assume that the marginal propensity to consume equals 0.8, the income tax rate equals 0.3, and the marginal propensity to import equals 0.2. The marginal leakage rate is ________ and the size of the multiplier is ________
A) 0.70; 3.33
B) 0.60; 2.5
C) 0.64; 1.56
D) 0.50; 2.0
C
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Assume that the graphs show a competitive market for the product stated in the question.
Select the graph above that best shows the change in the digital camera market when the productivity of workers who produce cameras increases.
A. graph (1) B. graph (2) C. graph (3) D. graph (4)
"The short-run Phillips curve shifts leftward when the inflation rate rises." Is the previous statement correct or incorrect?
What will be an ideal response?
Excluding criminal activities, the underground economy in the United States is equivalent in value to approximately what percentage of the GDP?
a. 10 to 15 percent b. 20 to 25 percent c. 30 to 35 percent d. not determinable
If the Fed wants to lower the money supply
A) it should lower the discount rate. B) it should buy bonds. C) it should lower the reserve requirement. D) it should sell bonds.