Which of the following increases the size of the expenditure multiplier?
A) an increase in investment
B) an increase in autonomous spending
C) a decrease in the marginal propensity to consume
D) a decrease in the marginal propensity to import
E) an increase in the marginal income tax rate
D
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The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A
Mr. Scrooge owns assets worth $100 million. The rate of return on his assets is 5 percent per year. Mr. Scrooge's wealth is ________, and his income is ________
A) $5 million a year; $100 million B) $100 million; $5 million a year C) $100 million; $105 million D) $5 million a year; $100 million a year
If you had a two regressor regression model, then omitting one variable which is relevant
A) will have no effect on the coefficient of the included variable if the correlation between the excluded and the included variable is negative. B) will always bias the coefficient of the included variable upwards. C) can result in a negative value for the coefficient of the included variable, even though the coefficient will have a significant positive effect on Y if the omitted variable were included. D) makes the sum of the product between the included variable and the residuals different from 0.
A country purchases more goods and services from residents of foreign countries than residents of foreign countries purchase from it. This country has
a. a trade surplus and positive net exports. b. a trade surplus and negative net exports. c. a trade deficit and positive net exports. d. a trade deficit and negative net exports.