A Gini coefficient of one indicates
a. the richest 10 percent of the people control 90 percent of the economy's income
b. the poorest 10 percent of the people control 1 percent of the economy's income
c. 50 percent of the people control 50 percent of the income
d. perfect income equality
e. perfect income inequality
E
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Economists call the idea that increases in government spending cause decreases in private investment
a. crowding out b. locking in c. the liquidity trap d. automatic stabilization e. the Phillips trade off
The differences between monetarist and Keynesian theories are more apparent than real
a. True b. False Indicate whether the statement is true or false
Which of the following examples shows the law of demand?
a. The demand for flashlights remained constant as the price decreased. b. The demand for avocados remained constant as the price increased. c. The demand for baseballs increased as the price decreased. d. The demand for geraniums increased as the price increased.
On January 1, 2008, Edward invested $10,000 at 5 percent interest for one year. The CPI on January 1, 2008 stood at 1.60. On January 1, 2009, the CPI was 1.76. The real rate of interest earned by Edward was ________ percent.
A. 5 B. -5 C. 10 D. 0