Assume that autonomous consumption equals $200 and that the mpc equals 0.8. If disposable income equals $1000, then total consumption equals
A) $80.
B) $200.
C) $800.
D) $1000.
D
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A subsidy may be used as a corrective device in the case of a positive externality because it will __________ marginal private benefits and __________ demand.
A. increase; decrease B. increase; increase C. decrease; decrease D. decrease; increase
By requiring minimum reporting, disclosure, vesting, funding, and investment standards, the __________ helps safeguard employee pension rights
A) Employee Retirement Income Security Act B) Federal Deposit Insurance Corporation C) Social Security Act D) Federal Reserve
According to Davis (1963), industrial firms need capital to expand, grow and develop. They will seek the most efficient means to finance this capital. In the U.S
during its period of industrialization, industrialists raised the resources needed to invest in capital accumulation by (a) tapping into the lending power of giant commercial banks. (b) utilizing the lending power of a large number of small banks. (c) merging. (d) engaging in all of the above.
The price of a coupon bond is determined by:
A. taking the present value of the coupon payments and adding this to the face value. B. taking the present value of all of the bond's payments. C. estimating its future value. D. taking the present value of the bond's final payment and subtracting the coupon payments.