If the tax multiplier is -4.0, what is the marginal propensity to consume?
a. 0.66
b. 0.75
c. 0.50
d. 0.80
e. 0.25
D
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Refer to the scenario above. The interest that you will earn, after a year, is equal to:
A) $10. B) $30. C) $32.24. D) $52.
Pegging a country's exchange rate to the dollar can be advantageous in all of the following situations except
A) if investors believe the dollar to be more stable than the domestic country's currency. B) if a country wishes to conduct independent monetary policy. C) if imports are a significant fraction of the goods the country's consumers buy. D) if the country has extensive trade with the United States.
Which of the following occurs when insurance makes a person more likely to engage in risky behavior?
a. lemon problem b. moral hazard c. adverse selection d. risk selection
Which of the following determines the maximum price a firm may charge for a particular quantity of output?
a. the firm's supply curve b. opportunity costs c. explicit and implicit costs of production d. the minimum point of the average total cost curve e. the demand curve facing the firm