If planned injections increase by $100 per day and the MPC is four-fifths,
a. the multiplier will be 5.
b. total daily spending will ultimately increase by $150.
c. the MPS will be $25.
d. All of these.
a. the multiplier will be 5.
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A recession abroad would
a. increase U.S. net exports and increase aggregate demand. b. increase U.S. net exports and increase aggregate supply. c. reduce U.S. net exports and reduce aggregate demand. d. reduce U.S. net exports and increase aggregate demand.
By approximately how much would the federal government have to raise each worker's annual taxes to eliminate the current federal budget deficit?
A. about $8,000 per year B. about $50,000 per year C. between $500 and $1,000 per year D. between $50 and $100 per year
The fact that the production function relating output to labor becomes flatter as we move from left to right means that
A. there is diminishing marginal productivity of capital. B. the marginal product of capital is positive. C. there is diminishing marginal productivity of labor. D. the marginal product of labor is positive.
The 2003 tax rebate is an example of
A. monetary policy. B. nondiscretionary trade policy. C. discretionary fiscal policy. D. nondiscretionary fiscal policy.