The desired fiscal restraint is equal to
A. Excess AD times the multiplier.
B. Excess AD divided by the multiplier.
C. GDP gap divided by the multiplier.
D. Desired AD reduction.
Answer: B
You might also like to view...
Suppose a firm has an investment project which will cost $200,000 and result in $30,000 profit. The firm will not undertake the project if the interest rate is
A) greater than 15 percent. B) greater than 10 percent. C) greater than 5 percent. D) positive.
All of the following are ways by which existing firms can deter the entry of new firms into an industry except
A) continuously producing new and improved products. B) advertising products aggressively. C) threatening to raise prices. D) earning less than maximum profit.
An example of price discrimination is charging more for steak than for a hamburger.
a. true b. false
An increase in the price of off-road vehicles will result in
A) a smaller quantity of off-road vehicles supplied. B) a larger quantity of off-road vehicles supplied. C) an increase in the demand for off-road vehicles. D) a decrease in the supply of off-road vehicles.