A conservative who was opposed to an increase in the size of the government sector but believed in the Keynesian approach to aggregate demand management would most likely favor which of the following expansionary policies?
a. increase taxes
b. decrease taxes
c. increase government spending
d. decrease government spending
b
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The three fundamental questions that any economy must address are:
A) How much will be saved; what will be produced; and how can these goods and services be fairly distributed? B) What goods and services to produce; how will these goods and services be produced; and who receives them? C) What will be the prices of goods and services; how will these goods and services be produced; and who will receive them? D) Who gets jobs; what wages do workers earn; and who owns what property?
In 2013, XYZ Corporation had total earnings of $500 million and XYZ retained 20 percent of its earnings for future investments. If the price of a share of XYZ stock is $70 and if 100 million shares of its stock is outstanding, then what is the price-earnings ratio?
a. 6.25 b. 11.2 c. 14.0 d. 17.5
An increase in public saving has what impact on the market for loanable funds?
A) The supply of loanable funds increases. B) The demand for loanable funds increases. C) The supply of loanable funds decreases. D) The demand for loanable funds decreases.
Approximately what percentage of American consumers' total spending is on food?
A. Less than 15 percent B. 20-25 percent C. About 30 percent D. More than 40 percent