If households save $0.20 of each additional dollar of increased income and spend the rest, the expenditure multiplier will be
A) 1.25.
B) 2.
C) 5.
D) 8.
C
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A call option has a strike price of $80. If the underlying stock is selling for $83 on the expiration date, the intrinsic value of the call option is __________ per share
A) $163 B) $83 C) $3 D) $0
Contractionary monetary policy causes a ________ the MP curve and a ________ the aggregate demand curve
A) movement to the right along; shift to the right of B) downward shift of; shift to the right of C) movement to the left along; movement up along D) upward shift of; shift to the left of
If its exports are greater than its imports, then a country has a:
A. government budget surplus. B. trade surplus. C. government budget deficit. D. trade deficit.
If the farmer is producing 5000 bushels of soybeans at point B in the figure above, we know that
A) the farmer is not using his resources efficiently. B) the farmer is using his land to produce a crop other than soybeans or corn. C) the farmer must be using more land than was used in constructing the production possibilities curve. D) the farmer is using his resources efficiently.