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1.Which one of the following statements is correct?
a. a decrease in net exports will decrease the equilibrium level of income
b. an increase in the tax rate will increase the size of the multiplier
c. a change in the tax rate has no impact on the size of the multiplier
d. an increase in net exports will decrease the equilibrium level of income
2.Which one of the following statements is correct regarding the Keynesian model with the government sector and the foreign sector?
a. government expenditure is autonomous
b. exports and imports are a function of the interest rate
c. an increase in government expenditure will decrease the equilibrium level of income
d. a decrease in net exports will increase the equilibrium level of income
In the Keynesian model, tax revenue…
a. does not appear in the aggregate expenditure function because it is always equal to government expenditure.
b. is taken into account through its effect on consumption.
c. reduces equilibrium income because it reduces autonomous spending.
d. increases aggregate expenditure because government invariably increases its spending when taxes rise.
e. is taken to be fixed because government expenditure is taken to be fixed.
In a Keynesian model with a foreign sector, an increase in the domestic income level will_____.
a. increase both exports and imports.
b. increase exports and decrease imports.
c. leave exports unchanged and increase imports.
d. decrease both exports and imports.
In the full Keynesian model,a decrease in exports would result in what?
Mavis Taylor Corporation has just issued preferred stock. The stock has a 6% annual dividend and a $100 par
value and was sold at $98.5 per share. Flotation costs were an additional $3 per share.
a. Calculate the cost of the preferred stock.
b. If the firm sells the preferred stock with a 10% annual dividend and net $93.00 after flotation costs, what is its
cost?
The fundamental economic problem that must be solved efficiently is
name the two drivers of the market share of Islamic banking assets and elaborate on their effects and their driving role in the economic growth.
Lowering college tuitions and providing grants and scholarships to technical schools would help diminish which type of unemployment
Draw graph to illustrate the difference between a decrease in the quantity demanded and a decrease in demand for mickey Mantle baseball cards. Mention possible reasons for change in each graph.
The balance of payments is a systematic statistical summary or record of all economic transactions between South Africa and the rest of the world.
1. True
2. False
