If the income-expenditure multiplier equals 4, and a 1 percent increase in the real interest rate reduces autonomous spending by 100 units, then a 1,000 unit recessionary gap can be eliminated by ________ the real interest rate by ________ percent.
A. increasing; 2.5
B. decreasing; 2.5
C. increasing; 10.0
D. increasing; 4.0
Answer: B
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U.S. cotton production
a. remained concentrated in Georgia and South Carolina until after 1860. b. was unable to compete with wool production in the antebellum textile industry. c. accounted for more than half of the dollar value of US exports between 1800 and 1850. d. faced declining world demand for most of the antebellum period.
Under representative democracy,
a. the median voter's preferences are always satisfied b. citizens no longer have any influence since they do not vote on each issue c. representatives may reflect the preferences of the median voter d. less vote trading will occur than under direct voting e. vote trading is impossible
A country that has a trade surplus:
A. imports more than it exports. B. has a negative trade balance. C. sells more goods abroad than it buys from abroad. D. buys more goods at home that it buys abroad.
Suppose there is a semiskilled labor market and two different unskilled labor markets. Initially, all three markets are in competitive equilibrium. What would happen if the government imposed a minimum wage rate above the competitive equilibrium rate in one of the unskilled labor markets?
a. Wage rates will rise in all three markets. b. Wage rates will rise in both unskilled labor markets, but remain unchanged in the semiskilled labor sector. c. Wage rates will rise in the semiskilled labor market and in the unskilled labor market covered by the minimum wage, but fall in the other unskilled labor market. d. Wage rates will rise in the unskilled labor market covered by the minimum wage, remain unchanged in the other unskilled labor market, and fall in the semiskilled labor market. e. Wage rates will rise in the unskilled labor market covered by the minimum wage, but remain unchanged in the other two markets.