Which of the following is a similarity between a bank loan and a bond?
a. Only large business houses can raise funds from these two methods
b. Only small business houses can raise funds from these two methods.
c. Funds raised from both methods have a fixed tenure for repayment.
d. Interest is required to be paid on the funds raised from both bonds and bank loans.
d
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Refer to the scenario above. Which of the following will happen if her husband quits his job to look after their son instead of Sarah?
A) The country's GDP will remain unchanged. B) The country's GDP will increase. C) The country's trade deficit will increase. D) The country's trade surplus will increase. Mike's housekeeper charges $30 for mowing his lawn.
Assume a closed economy, that taxes are fixed, and the marginal propensity to consume is equal to 0.8. What is the government spending multiplier?
A) 10 B) 5 C) 4 D) 3