An increase in the time to the promised future payment ________ the present value of the payment
A) decreases
B) increases
C) has no effect on
D) is irrelevant to
A
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If MPC = 0.8, how much government spending would be needed to close a recessionary gap of $500?
a. –100 b. +80 c. –80 d. +500 e. +100
Which of the following statements is true?
A. National income is total income earned by households whereas personal income is total income received by households (including transfer payments). B. Disposable personal income equals personal income plus personal taxes. C. The expenditures approach yields a higher GDP value than the income approach. D. The expenditures approach yields a lower GDP value than the income approach.
A country that exports more than it imports will:
A. have a current account deficit and a capital account surplus. B. have a current account deficit and a capital account deficit. C. have a current account surplus and a capital account deficit. D. have a current account surplus and a capital account surplus.
Rational expectations theory considers the aggregate:
A. Demand curve to be vertical B. Supply curve to be vertical C. Supply curve to be horizontal D. Demand curve to be horizontal