If the marginal propensity to consume (MPC) is 0.75 and if policy makers wish to increase real GDP by $300 million to fight a recession, then by how much would taxes have to change?

The financial crises of the 1990s pointed out that small developing countries have a vulnerability to globalization in terms of _____

a. environment b. labor standards c. international capital flows d. the judicial system e. child labor

Figure 5-6

In Figure 5-6, a shift in the budget line from AC to AB indicates

a.
the price of wine coolers has risen.

b.
income has increased.

c.
the price of beer has fallen.

d.
the price of wine coolers has fallen.

e.
All of the above are correct.