Which of the following is true?
a. The tax multiplier is smaller than the government spending multiplier
b. The government cannot stimulate consumer spending through tax cuts.
c. The government spending multiplier is smaller than the tax multiplier.
d. The government can stimulate consumer spending through decreases in transfer payments.
a
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A bank has excess reserves of $4,000 and demand deposit liabilities of $100,000 when the required reserve ratio is 20 percent. If the reserve ratio is raised to 25 percent, the bank's excess reserves will be
A) -$5,000. B) -$1,000. C) $1,000. D) $5,000.
When net exports are positive,
a. exports are greater than imports b. imports are greater than exports c. imports are greater than investments d. exports are greater than depreciation spending e. exports are greater than net investment
Suppose Ben owns a small company that makes kites. The market for kites is perfectly competitive, and kites sell for $25 each. Ben's total production costs vary depending on the number of kites he makes each day, as shown in the accompanying table. Number of kites Per DayTotal Cost Per Day ($)0100111021263148417252006235 What is the profit-maximizing number of kites for Ben to make each day?
A. 0 B. 3 C. 5 D. 4
If 40,000 worker-hours produced a total output of $600,000 in an economy, then the labor productivity is:
A. $10/worker-hour B. $15/worker-hour C. $24/worker-hour D. $240/worker-hour