The shut-down decision is a short-run decision.
Answer the following statement true (T) or false (F)
True
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Explain the relationship among the capital stock, gross investment, net investment, and depreciation
What will be an ideal response?
Assuming initially that the required reserve ratio = 10%, the currency-deposit ratio = 40%, and the excess reserve ratio = 0, an increase in the required reserve ratio to 15% causes the M1 money multiplier to ________, everything else held constant
A) increase from 2.55 to 2.8 B) decrease from 2.8 to 2.55 C) increase from 1.82 to 2 D) decrease from 2 to 1.82
Suppose a negative income tax program is established at 25 percent, and a poverty threshold minimum of $15,000 is guaranteed for a family of four. What is the highest income a family could earn in the workplace before being cut out of the government program?
a. $20,000 b. $15,000 c. $18,750 d. $60,000 e. $10,000
Consider the following three items of spending by the government: (i) the federal government pays a $500 unemployment benefit to an unemployed person; (ii) the federal government makes a $2,000 salary payment to a Navy lieutenant; (iii) the city of Bozeman, Montana makes a $10,000 payment to ABC Lighting Company for street lights in Bozeman. Which of these payments contributes directly to
government purchases in the national income accounts? a. only item (i) b. only item (ii) c. only items (i) and (ii) d. only items (ii) and (iii)