The oversimplified formula for the multiplier yields a number that is too large due to the exclusion of
a. variable imports.
b. changes in the price-level.
c. income taxes.
d. All of the above.
d
You might also like to view...
Refer to Figure 18-1. Of the tax revenue collected by the government, the portion borne by producers is represented by the area
A) F + G. B) B + C. C) E + H. D) B + C + F + G.
Assume you borrow funds to buy a new car at 10 percent interest and you think that the economy-wide rate of inflation over the life of the loan will be 8 percent
If you are correct in your assumption, your real rate of interest on the car loan will be A) 2 percent. B) 8 percent. C) 10 percent. D) 18 percent.
The evidence on the question of Head Start effectiveness suggests that
A. Head Start children have an advantage over equally-situated children on first-grade tests of reading and verbal skill. B. Head Start children have an advantage over equally-situated children on tenth-grade tests of reading and verbal skill. C. there is no effect of the program whatsoever. D. Head Start children have an advantage over equally-situated children on the SAT.
Workers in high-income countries have ________ to work with than do workers in low-income countries
A) less physical capital B) more physical capital C) more labor D) more labor and less physical capital