One of the largest foreign portfolio investments in the U.S. comes from:
A. Chinese purchases of U.S. capital goods.
B. U.S. purchases of Chinese government debt.
C. U.S. purchases of Chinese consumption goods.
D. Chinese purchases of U.S. government debt.
Answer: D
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Explain why the expenditure multiplier is greater than 1
What will be an ideal response?
The multiplier is defined as the ratio of a change in income to the
A) marginal propensity to save. B) marginal propensity to consume. C) change in the marginal propensity to consume causing it. D) change in the marginal propensity to save causing it. E) change in planned autonomous spending causing it.
Money is valuable because it
A) is backed by gold and silver. B) is issued by credit card companies such as American Express, MasterCard, and Visa. C) reduces transaction costs. D) is backed by U.S. Treasury bonds.
Figure 18.1Refer to Figure 18.1. The opportunity cost of hang gliders in the United States is:
A. 1/4 of a bicycle. B. 1/3 of a bicycle. C. 3 bicycles. D. 4 bicycles.