If the government wishes to decrease GDP by $2,000b, and the MPC is 0.6, it should:
A. increase its spending by $1,200b.
B. decrease its spending by $1,200b.
C. increase its spending by $800b.
D. decrease its spending by $800b.
D. decrease its spending by $800b.
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How do legal controls on prices lead to corruption?
a. Persons who benefit from the controls are willing to bribe officials to keep the controls in place. b. Persons who make the laws may favor certain groups at the expense of others. c. Selling in the black market is very profitable, and persons therefore willingly break the law. d. Discrimination may occur as a means to limit buying or selling select groups. e. All of the above are correct.
Which of the following is true of stocks?
a. Stock ownership is risky because the investor can never be sure what return they will earn or what the value of their stock holdings will be in the future. b. The riskiness of stocks is one reason why their average rate of return has been higher than investments like bonds that guarantee a specified nominal amount in the future. c. Both a and b are true. d. Neither a nor b is true.