In the aggregate expenditures model, assume that the MPC is 0.75 . An increase in investment spending of $6 billion would produce an ultimate increase in real GDP of:

One of the major lessons learned in the chapter on experiments and quasi-experiments

A) is that there are almost no true experiments in economics and that quasi-experiments are a poor substitute. B) you should always use TSLS when estimating causal effects in quasi-experiments. C) populations are always homogeneous. D) is that the insights of experimental methods can be applied to quasi-experiments, in which special circumstances make it seem "as if" randomization has occurred.

Under a pure gold standard,

A) exchange rates float most of the time. B) money is worth more than under other systems. C) nations must buy and sell gold to settle international obligations. D) there is no inflationary pressure.