If the government wishes to increase GDP by $1,200b, and the MPC is 0.8, it should:
A. increase its spending by $960b.
B. increase its spending by $240b.
C. decrease its spending by $240b.
D. decrease its spending by $960b.
Answer: B
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Given the indifference curve in the above figure, which point is preferred to point a?
A) point b B) point c C) point d D) point e
The test statistic used to test the hypothesis of whether a regression coefficient is significantly different from zero, holding all other independent variables constant, is called a(n):
A) F-test. B) autocorrelation test. C) multicollinearity test. D) t-test.
Explain why an appreciating U.S. dollar does not benefit everyone in the U.S.
What will be an ideal response?
Formation of trade blocs can be considered beneficial because it
A. diverts world trade from low-cost producers to high-cost producers by encouraging too much trade within blocs. B. causes international friction when certain countries are let in the bloc and others are left out. C. encourages purchases from higher-cost producers. D. encourages increased total trade by each member country.