If MPC = 0.80, how much should government spending change to increase real GDP by $500?
a. -100.
b. +80.
c. -80.
d. +500.
e. +100.
e
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The decrease in social surplus from a market distortion is referred to as:
A) deadweight loss. B) market loss. C) revenue loss. D) Pareto loss.
Risk-based deposit insurance premiums have recently been __________ and this is expected to __________ the moral hazard problem of deposit insurance
A) abolished; alleviate B) abolished; worsen C) established; alleviate D) established; worsen
If regulations create barriers to entry in an industry, the result can be _____
a. efficiency b. monopoly c. monopsony d. higher output
Which of the following will cause an increase in the amount of money that one wishes to hold?
A) an increase in the interest rate increase B) a reduction in the interest rate increase C) a reduction in income D) none of the above