Using the multiplier, we can easily calculate the effect of further changes in government spending.
What will be an ideal response?
For example, suppose that government spending were reduced from 80 to 60. This negative change of 20 in G would lead to a change of (5 3 -20 = -100) in equilibrium Y. Income would fall from 800 to 700
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Assets are things of value that people own. Liabilities are debts. Therefore, a bank will always consider a checking account deposit to be an asset and a car loan to be a liability.
A. Disagree. Checking accounts represent something that the bank owes to the owner of the account. It is a bank liability B. Agree. checking accounts or something of value that is in the bank. Therefore, they are a bank asset C. Disagree. Both checking accounts and car loans represent bank liabilities
In POW camps during World War II, nearly everything was traded for cigarettes. For example, one bar of soap cost two cigarettes, and two candy bars cost four cigarettes. During the time of the POW camps, cigarettes:
A. served as money for those who smoked. B. did not serve as money because their value was not backed by government. C. served as money because they served as a unit of account, medium of exchange, and store of wealth. D. did not serve as money because no one controlled the supply of cigarettes.
An example of a compensating differential is
A. a police department hires both men and women who have just graduated from college. The men are assigned patrol duty, and the women are assigned desk jobs. B. a cardiologist must train for two more years than a family practitioner and on average cardiologists earn 65% more per year than family practitioners. C. Paulie was injured on the job at a tanning salon and as a result of his injuries he can no longer work. He now qualifies for $1,600 a month in disability payments. D. it takes the same amount and type of training to be either a paramedic or an emergency room nurse. Paramedics earn about 25% more than emergency room nurses with the same amount of experience. About 12% of paramedics, but only 3% of emergency room nurses, are injured on the job each year.
Refer to the table above. If the opportunity cost of time increases to $60 per hour, renting which apartment will minimize Ryan's total cost every month?
A) 2 B) 3 C) 4 D) 5