The more profits are reinvested into the firm, the
A) less there is available to distribute to bondholders.
B) less there is available to distribute to stockholders.
C) more the firm will be able to raise in sales of new issues to stock.
D) more bonds the firm will sell in order to pay their required dividends to preferred stockholders.
Answer: B
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Use the following consumption schedule to answer the next question. 
The marginal propensity to consume is represented by
A. GE/AB. B. EF/BE. C. GF/BE. D. DE/AB.
An inside lag is
A) a policy aimed at reducing GDP. B) a lag in implementing policy. C) the period of time it takes for policies to work. D) a policy aimed at increasing GDP.
The new Keynesians emphasize the importance of
A) rational expectations. B) sticky wages and prices. C) real causes of the business cycle. D) the monetary growth rule.
Refer to Figure 8.3. Holding other variables constant, a decrease in households' wealth accompanied by an increase in the capital stock will definitely result in
A) an increase in the equilibrium quantity of labor. B) a decrease in the equilibrium quantity of labor. C) an increase in the equilibrium real wage. D) a decrease in the equilibrium real wage.