If MPC = 0.80, how much should government spending change to increase real GDP by $500?
a. ?100.
b. +80.
c. ?80.
d. +500.
e. +100.
e
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Pension funds are partially guaranteed by the
A) Social Security Administration. B) Federal Deposit Insurance Corporation. C) Federal Reserve. D) Pension Benefit Guaranty Corporation.
You may be unwilling to buy a used car because you suspect the last owner found out the car was a lemon. You may treat a car you rented with a little less care than you would use on your own car
a. Both examples primarily illustrate adverse selection. b. Both examples primarily illustrate moral hazard. c. The first example primarily illustrates adverse selection; the second primarily illustrates moral hazard. d. The first example primarily illustrates moral hazard; the second primarily illustrates adverse selection.
The essential difference between sales and excise taxes is that
A. sales taxes apply to a wide range of products, while excises taxes apply only to a select group of products. B. excise taxes apply to a wide range of products, while sales taxes apply only to a select group of products. C. sales taxes are consumption taxes, while excise taxes are not. D. excise taxes are consumption taxes, while sales taxes are not.
For which of the following purchases would the absolute price elasticity of demand be smallest?
A. a house B. chewing gum C. a tablet D. a luxury sport utility vehicle