The balanced-budget multiplier is equal to the
A) the autonomous spending multiplier.
B) government spending multiplier plus the tax multiplier.
C) simple multiplier minus the tax multiplier.
D) government spending multiplier plus the simple multiplier.
B
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The exchange-rate effect is based, in part, on the idea that
a. a decrease in the price level reduces the interest rate. b. an increase in the price level causes investors to move some of their funds overseas. c. an increase in the price level causes domestic goods to become less expensive relative to foreign goods. d. a decrease in the price level reduces spending on net exports.
Knowing that Coke controls 80 percent of the cola market and Pepsi controls 20 percent, we can conclude the cola market is:
A. monopolistically competitive. B. a monopoly. C. an oligopoly. D. perfectly competitive.