Economists tend to judge a model based upon
A) the reality of its assumptions.
B) the accuracy of its predictions.
C) its simplicity.
D) its complexity.
B
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The national debt
A) is the difference between total government revenues and government expenditures. B) is the sum of all past federal deficits plus any surpluses. C) is the sum of all past federal deficits less any surpluses. D) grows when government spending increases.
The "coupon rate" is:
A. the total amount of interest payments made on a bond as a percentage of the amount borrowed. B. the annual amount of interest payments made on a bond as a percentage of the amount borrowed. C. the change in the value of a bond expressed as a percentage of the amount borrowed. D. another name for the yield on a bond, assuming the bond is sold before it matures.
In an economy where the poorest quintile of the population receives 5 percent of the income, the Lorenz curve:
a. is the diagonal of the box. b. lies below the diagonal in the box. c. lies above the diagonal in the box. d. is the lower right corner of the box. e. is the upper left corner of the box.
Exhibit 9-8 Keynesian aggregate expenditures model
?
In Exhibit 9-8, the value of the spending multiplier is:
A. 3. B. 4. C. 5. D. 2.