If the MPC is 0.70, then the income multiplier is equal to
a. 0.70
b. 0.30
c. 0.14
d. 3.33
e. 5
D
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In a purely competitive market, the Herfindahl Index would have a value approaching
a. 1. b. 100. c. 0. d. infinity.
The U.S. government uses export subsidies extensively to stimulate exports
a. True b. False Indicate whether the statement is true or false
Measuring the effects of labor immigration shows:
a. that as workers move, they disrupt their families and cause huge costs in the recipient nation. b. that most immigrants spend months trying to find work. c. that immigration benefits the recipient nation by raising the marginal product of capital, expanding laborintensive production, and lowering prices of laborintensive goods. d. that immigration is very harmful to the host nation because of a huge increase in the unemployment rate
If the Fed sells government securities on the open market, this will cause _____ in the quantity of money available and _____ in the interest rate.
A. an increase; an increase B. a decrease; an increase C. an increase; a decrease D. a decrease; a decrease