Suppose the multiplier effect for Japan is 0.8 for any $1 billion change in U.S. government purchases. Therefore, Japanese real GDP will rise by $8 billion when U.S. government spending rises by $10 billion
a. True
b. False
Indicate whether the statement is true or false
True
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If the demand for eBook readers increases and the supply of eBook readers increases, then
A) it is clear that prices will increase, the change in the quantity of eBook readers sold is ambiguous. B) it is clear that prices will decrease, the change in the quantity of eBook readers sold is ambiguous. C) it is clear that quantity sold will increase, the change in the price of eBook readers is ambiguous. D) it is clear that quantity sold will decrease, the change in the price of eBook readers is ambiguous.
Having a refundable deposit for recyclable material
A) raises the marginal private cost of disposal. B) raises the marginal social cost of disposal. C) lowers the marginal private cost of disposal. D) lowers the marginal social cost of disposal. E) does not affect disposal costs.