The Chapter 3 multiplier, because it assumes an ________ interest rate, is usually an ________ of the fiscal policy multiplier in the IS-LM model
A) endogenous, underestimate
B) endogenous, overestimate
C) exogenous, underestimate
D) exogenous, overestimate
D
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Which of the following is included in the capital account in the BOP?
A) US-owned assets abroad B) US-owned assets in the US C) Unilateral transfers D) All are included in the capital account.
Which of the following mechanisms helps output to return to potential after a supply shock?
a. A change in the nominal wage b. Changes in business decision making strategies c. Changes in the capital stock d. The rigidity of the price level e. Changes in inventories
Which of the following is the best definition of "physical capital"?
a. the labor utilized in the production process b. man-made resources used to produce other goods c. natural resources in their original state d. the ownership of stock shares issued by a corporation
Which of the following is TRUE?
a. Maximizing division profits will always lead to maximizing company profit b. Maximizing division profits will always lead to minimizing company profit c. Maximizing division profits can sometimes lead to reducing company-wide profit d. Maximizing division profits has no effect on company-wide profits