If the marginal propensity to save is 0.35, the multiplier is 2.86
Indicate whether the statement is true or false
TRUE
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There exist only two causes of monopoly: barriers to entry and government restrictions.
Answer the following statement true (T) or false (F)
Sellers respond to a surplus by cutting their prices
a. True b. False Indicate whether the statement is true or false
How do countries know when they have a comparative advantage in the production of a good?
A) Government accountants collect cost data from countries and analyze it to find out which country has a comparative advantage in the production of which good. B) They know as the result of individuals trying to earn profits and buying low and selling high in the process. C) The United Nations Economic Conference Group analyzes cost data from countries and determines which country has a comparative advantage in the production of which good. D) There is not one major way that countries acquire this information.
When the Fed buys government securities
A. reserves increase, leading to a decrease in the money supply by an amount more than the purchase of the government securities. B. reserves decrease, leading to a decrease in the money supply by an amount more than the purchase of the government securities. C. reserves decrease, leading to a increase in the money supply by an amount more than the purchase of the government securities. D. reserves increase, leading to a increase in the money supply by an amount more than the purchase of the government securities.