The subprime mortgage bubble featured ____ leverage, and the technology stock bubble featured ____ leverage.
A. significant; significant
B. significant; limited
C. limited; significant
D. limited; limited
Answer: B
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If the marginal propensity to consume (MPC) is 0.50, the value of the spending multiplier is:
a. 5. b. 1. c. 2. d. 5.
Maude is complaining about how much she pays in taxes now that the economy is finally doing really well. Even though she's in the same tax bracket as she was last year, she's paying $500 more in taxes this year, just because she earned more overtime pay this year. Maude's increased tax payment to the government is an example of:
A. expansionary fiscal policy. B. contractionary fiscal policy. C. discretionary fiscal policy. D. automatic stabilizers.
One year nominal GDP was $36 trillion and the price index was 120. Real GDP that year was:
a. $12 trillion b. $30 trillion c. $48 trillion d. $24 trillion
The prisoner's dilemma game can involve:
A. only two players. B. more than two players. C. multiple organizations. D. All of these statements are true.