Assume the MPC is 0.80. The change in total spending for the economy due to a $200 billion government spending increase is
A. $800 billion.
B. $200 billion.
C. $1 trillion.
D. $160 billion.
Answer: C
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The Aldrich-Vreeland Act of 1908 provided for temporary emergency currency for national banks
Indicate whether the statement is true or false
Joni starts her own business. She quits her $50,000 a year job, rents an office for $15,000 a year, pays wages and salaries of $50,000 a year, utilities of $4,000 a year, and materials of $20,000. Joni uses her own car for sales work rather than leasing an equivalent car for $6000 a year. If revenues are $140,000, her accounting profit and economic profit are respectively
A. $51,000 and -$5,000. B. $45,000 and $51,000. C. $51,000 and $5,000. D. $45,000 and $1,000.
When the Fed sells government securities, banks' reserves ________, the quantity of money ________, and the federal funds rate ________
A) decrease; decreases; falls B) decrease; increases; falls C) increase; increases; falls D) increase; decreases; rises E) decrease; decreases; rises
Jake takes 40 minutes to fry a chicken and 10 minutes to toast a slice of bread. His brother Elwood takes 60 minutes to fry a chicken and 4 minutes to toast a slice of bread. Calculate each brother's opportunity cost
Who has a comparative advantage in which activity? Explain. Will the brothers gain if they specialize?