Which of the following will cause aggregate private spending to increase?
A) an increase in government spending
B) a reduction in expected future interest rates
C) a reduction in expected future taxes
D) all of the above
E) none of the above
D
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When the marginal propensity to consume (MPC) increases
A) the average propensity to save remains unchanged. B) the multiplier remains unchanged. C) the multiplier decreases. D) the multiplier increases.
Suppose the University of Oklahoma increases the price of student football tickets for the 2012 season by 30 percent. If the price elasticity of demand for student tickets is 1.22, the price increase leads to
A) a 36.6 percent decrease in the quantity demanded. B) a 30 percent decrease in the quantity demanded. C) a 1.22 percent decrease in the quantity demanded. D) a 28.78 percent decrease in the quantity demanded. E) no change in the quantity demanded.
Which of the following is not a tool of fiscal policy?
What will be an ideal response?
Assume D1 represents the current demand curve for skis. Which of the following would most likely cause D1 to shift to D2?
A. An increase in the price of skis B. A decrease in the price of skis C. A decrease in the price snowboards D. An increase in the price of snowboards