(03.02 MC) Assume that the government of a country decides to give out tax refunds of $4.5 million to small domestic firms that are struggling. If the marginal propensity to save in the country is 0.25, then what is the maximum impact this measure will have on the GDP of the country?

(02.05 MC) If a bank offers a home loan with a fixed interest rate of 8 percent with an expected inflation rate of 4 percent. If the inflation rate ends up being 5 percent, which accurately describes the impact on the bank?

(05.03 MC) If the money supply in an economy is $750 billion, the velocity of money is constant at 3, and the price level is 5, then what will be the country’s real output?

(05.06 MC) A rightward shift of which of the following models illustrates economic growth?

(05.05 MC) The economy depicted in this data table is closed, with no international trade of any kind. Government spending $40 billion Government transfer payments $20 billion Tax revenues $40 billion Private savings $60 billion Business capital investments $60 billion Based on the data above, which of the following must be true?

(03.02 MC) Assume that the marginal propensity to consume is 0.6. What is the significance of an increase in expenditure on the equilibrium real GDP?

(05.07 MC) The government of country B has relaxed immigration policies. Which of the following is likely to be a consequence of this policy?

(05.05 LC) When the government borrows money to finance its deficit, how does the resulting change in private investment affect capital accumulation and economic growth in the long run?

(02.02 LC) Which of the following is a limitation of GDP?

(01.06 HC) Use the graph to answer the question that follows.Which of the following best explains the shift from D1 to D2 for Good A in this graph?