Ignoring any supply-side effects, to close an inflationary gap of $100 billion with a government expenditure multiplier of 5, the government could
A) decrease government expenditure on goods and services by $20 billion.
B) decrease government expenditure on goods and services by $100 billion.
C) lower taxes by $100 billion.
D) increase government expenditure on goods and services by $20 billion.
E) lower taxes by more than $20 billion.
A
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In nonlinear models, the expected change in the dependent variable for a change in one of the explanatory variables is given by
A) ?Y = f(X1 + X1, X2,... Xk). B) ?Y = f(X1 + ?X1, X2 + ?X2,..., Xk+ ?Xk)- f(X1, X2,...Xk). C) ?Y = f(X1 + ?X1, X2,..., Xk)- f(X1, X2,...Xk). D) ?Y = f(X1 + X1, X2,..., Xk)- f(X1, X2,...Xk).
Jennifer is a junior in college. Her current cumulative grade point average (GPA) is 3.5 out of a 4.0 scale. Jennifer is hoping that by the time she graduates, she can raise her cumulative GPA to a 3.7 . Which of the following statements is correct?
a. If Jennifer earns between a 3.5 and a 3.7 GPA in her senior year, she will be able to raise her cumulative GPA to a 3.7. b. If Jennifer earns a 3.7 GPA in her senior year, she will be able to raise her cumulative GPA to a 3.7. c. Jennifer must earn above a 3.7 GPA in her senior year in order to raise her cumulative GPA to a 3.7. d. Either b or c could be correct.