If an increase in investment of 50 causes an increase in real GDP of 250, the value of the spending ...

If an increase in investment of 50 causes an increase in real GDP of 250, the value of the spending multiplier is:
 a. 5.
  b. .20.
  c. .80.
  d. 3.
  e. 10.

QUESTION 2

Which of the following groups oversees and administers the Federal Reserve System?
 a. The House of Representatives.
  b. The President's Council of Economic Advisors.
  c. The U.S. Treasury Department.
  d. None of these, the Fed is an independent agency.

QUESTION 3

The freedom of consumers to cast their dollar votes to buy, or not to buy, at prices determined in competitive markets describes:
 a. socialism. b. communism.
  c. consumer sovereignty. d. the aspirations of Karl Marx.

QUESTION 4

If the MPC is 0.70, then the spending multiplier is equal to:
 a. 0.70.
  b. 0.30.
  c. 0.14.
  d. 3.33.
  e. 5.

QUESTION 5

The seven members of the Board of Governors serve 14-year terms to:
 a. reduce political influence.
  b. provide steady employment.
  c. inhibit independent decisions.
  d. prevent illegal appointments.