The equation for the tax multiplier is
a. 1
b. MPS/(1 - MPC)
c. (1 - MPC)/MPC
d. (1 - MPC)/MPC
e. MPC/(1 - MPC)
E
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On a production possibilities frontier, 500 pounds of apples and 1,200 pounds of bananas can be produced while at another point on the same frontier, 300 pounds of apples and 1,300 pounds of bananas can be produced
Between these points, what is the opportunity cost of producing a pound of apples? A) 2 pounds of bananas B) 5/12 of a pound of bananas C) 0.5 of a pound of bananas D) 2 pounds of apples E) 100 pounds of bananas
We have learned from this chapter that the real value of the debt is eroded by inflation and may be overestimated because of it and other factors. Do you feel that the debt will be a major concern during your working lifetime and retirement?
What will be an ideal response?
Today, in the United States, exports are about
A) 90 percent of GDP. B) 12 percent of GDP. C) 28 percent of GDP. D) 4 percent of GDP.
In 2014, the United States ran a trade deficit of 3.1 percent of GDP.
Answer the following statement true (T) or false (F)