The balanced-budget multiplier is equal to the
A) the autonomous spending multiplier.
B) government spending multiplier plus the tax multiplier.
C) simple multiplier minus the tax multiplier.
D) government spending multiplier plus the simple multiplier.
B
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Which of the following has been a problem faced by the FDIC in its provision of federal deposit insurance?
A) a relatively low number of bank failures each year, which has reduced the need for deposit insurance B) moral hazard arising from the tendency for the highest-risk banks to be those most interested in obtaining deposit insurance in the first place C) adverse selection arising from the tendency for banks to take on more risk after they receive deposit insurance D) moral hazard arising from the tendency for banks to take on more risk after they receive deposit insurance
Economic profit is defined as total revenue
a. plus total costs b. minus marginal costs c. minus variable costs d. minus total costs e. minus fixed costs
Using aggregate demand and aggregate supply analysis, explain why increases in oil did not lead to stagflation in 2006–2008 but did lead to stagflation in the 1970s and early 1980s.
What will be an ideal response?
When a firm has many competitors selling the same good, in order to sell more of the good,
A. it must, ironically, increase prices. B. it must advertise. C. it must reduce the price it charges. D. it only needs to produce more of the good.