According to the Keynesian view, if policy makers thought the economy was about to fall into a recession, which of the following would be most appropriate?
a. a change in government spending and taxation that will lead to a budget surplus
b. a planned increase in the budget deficit
c. reducing government expenditures
d. balancing the budget
B
Economics
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When income increases from $20,000 to $30,000 the number of home delivered pizzas per year increases from 22 to 40. The income elasticity of demand for home delivered pizza equals
A) 1.45. B) 0.69. C) 0.58. D) 0.40. E) 2.86.
Economics
To the extent that current profits are directly related to future profits, a high price/earnings ratio would indicate that stocks are
a. inexpensive. b. expensive. c. going to increase in value in the future. d. most likely to fall in value if interest rates decline.
Economics