If the simple spending multiplier is 10, the marginal propensity to save (MPS) is:
a. 1/10.
b. 9/10.
c. 1/9
d. 10/9.
e. 9.
a
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Jessica must choose option A or option B. Option A gives her $10,000 for sure. Option B gives her $5,000 if a fair coin toss shows heads and $15,000 if it shows tails. If Jessica is risk averse her utility of wealth curve becomes
A) flatter as her wealth increases and she will choose option A. B) flatter as her wealth increases and she will choose option B. C) steeper as her wealth increases and she will choose option A. D) steeper as her wealth increases and she will choose option B.
The collapse of the Bretton Woods system marked
A) the end of floating exchange rates and a move to fixed exchange rates. B) marked the end of fixed exchange rates and a move to floating exchange rates. C) the beginning of the gold standard. D) a plunge in the price of gold. E) the elimination of paper currencies.
A company has an investment project that will cost $2 million today and yield a payoff of $3 million in 5 years. What interest rate represents the cutoff between profitability and nonprofitability for this project?
Refer to the information below. If Normal University undertakes program Level Three:
Answer the question based on the following information. Normal University has found it necessary to institute a crime-control program on its campus to deal with the high costs of theft and vandalism. The university is now considering several alternative levels of crime control. This table shows the expected annual costs and benefits of these alternatives.
A. Total benefits will be less than total costs
B. Marginal costs will exceed marginal benefits
C. There would be an under-allocation of resources to crime control
D. There would be an over-allocation of resources to crime control