Which of the following would make the spending multiplier smaller?
A) a reduction in marginal propensity to save
B) a small initial trade deficit
C) a reduction in the marginal propensity to import
D) a real appreciation
E) none of the above
E
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Assume that one of two possible outcomes will follow a decision. One outcome yields a $75 payoff and has a probability of 0.3; the other outcome has a $125 payoff and has a probability of 0.7. In this case the expected value is
A) $85. B) $60. C) $110. D) $35.
All of the following are true regarding a sealed-bid second-price auction except which one?
A) Participants submit sealed bids. B) The participant with the highest bid wins. C) The winner of the auction pays what the second-highest participant bid. D) This kind of auction is common.
In the short run, each firm in a perfectly competitive market is free to
a. increase its plant size b. vary its output level within its existing capacity c. exit the industry without losses d. set a price above the market price e. decrease its plant size
In a December 2007 New York Times column Paul Krugman argued in favor of
a. protectionism based on the national-security argument. b. protectionism based on the infant-industry argument. c. protectionism based on the unfair-competition argument. d. keeping world markets relatively open.