52-55

52. Suppose an economy has a marginal propensity to consume of 9/10 and an average tax rate of 1/3. Please calculate the multiplier that would apply to shift the IS curve to the right. (a) ten; (b) six and two thirds; (c) one; (d) one and two-thirds. 53. Which of the following is NOT generally considered a long-term determinant of the U.S. labor force participation rate? (a) the level of "discouragement" among unemployed persons; (b) frictional unemployment; (c) cultural factors, such as the willingness and ability of caregivers to work; (c) frictional unemployment; (d) demographics. 54. Which of the following would most likely cause the long-end of the Treasury yield curve to steepen temporarily? (a) the FOMC raises short-term interest rates repeatedly to fight inflation; (b) demand for Treasury bonds increases relative to the supply of Treasury bonds; (c) higher inflation expectations become embedded in asset managers' forecasts; (d) the Fed engages in another round of "Operation Twist." 55. According to the Solow Growth Model, capital accumulation should take place until: (a) the marginal product of capital falls to the level of depreciation; (b) the marginal product of capital equals per capita income growth; (c) Zach Wilson throws for four touchdowns in a single game; (d) the demand for and supply of money are equal to one another