If the marginal propensity to save (MPS) is 0.25, the value of the spending multiplier is:
a. 1.
b. 2.
c. 4.
d. 9.
c
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Activists believe that monetary and fiscal policy will only work if it comes as a surprise to the public
a. True b. False Indicate whether the statement is true or false
Refer to the information provided in Table 20.6 below to answer the question(s) that follow.
Table 20.6
Refer to Table 20.6. If the exchange rate is $1 = 3 euros, then
A. the United States will import peas and France will import carrots. B. the United States will import carrots and France will import peas. C. France will import both peas and carrots. D. the United States will import both peas and carrots.
An increase in foreign output would cause the domestic country's net exports to ________ and cause the domestic country's IS curve to ________
A) rise; shift up B) rise; shift down C) fall; shift up D) fall; shift down
The beta for General Motors (GM) is 0.5, the risk-free rate is 4%, and the market return is 9%. What is GM's risk-adjusted discount rate?
A) 4% B) 4.5% C) 6.5% D) 9%