Bank holding companies are examined by the __________________

In Corinthia, the marginal propensity to consume is 0.7, base consumption is $500, the tax rate is 20 percent of income, national income is $3,000 . investment spending is $1,000 . government spending is $1,000 . export earning is $2,000 . and import spending is $500 . When the real GDP of Corinthia is zero, its aggregate expenditure equals _____

a. $4,000 b. $7,500 c. $8,900 d. $10,000

When the market fails to promote the efficient use of resources by producing either more or less than the optimal output level, government involvement can improve outcomes when _____.

a. the market equilibrium does not result in the equal distribution of the output b. there are externalities in production and/or consumption that are not captured by the parties involved in the transaction c. firms have undue market power d. there are barriers to entry that limit competition e. asymmetric information characterizes the transaction