Draw a saving—investment diagram to show how each of the following changes shifts the IS curve
(a) Future income rises.
(b) The future marginal productivity of capital increases.
(c) Government purchases decrease temporarily.
(d) The effective corporate tax rate increases.
(a) IS shifts up and to the right.
(b) IS shifts up and to the right.
(c) IS shifts down and to the left.
(d) IS shifts down and to the left.
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Refer to the figure below. Player A can infer that Player B will: 
A. Player A cannot infer anything about what Player B will do given this matrix. B. choose Right. C. choose Left when A chooses Up and choose Right when A chooses Down. D. choose Left.
An increase in government expenditures by $100 (unmatched by an increase in taxes) would, if the MPC = 0.9, result in an increase in national income by
a. $1,000 b. $9,000 c. $900 d. $190 e. inadequate information is given
A machine with a cost of $200,000 and accumulated depreciation of $100,000 is sold for $80,000 cash. The amount reported as a source of cash under cash flows from investing activities is
A. $20,000 B. $80,000 C. $100,000 D. zero; this is a financing activity E. zero; this is a operating activity
The concept of comparative advantage applies:
a. only to people with at least a high school diploma.
b. only to people who are currently employed.
c. to situations in which you have information about the salary levels of those with whom you are competing for a job.
d. to every case of trade or exchange.
e. only to goods that are sold in the domestic market.