Assume that policymakers believed that the marginal propensity to consume (MPC) was 0.9. Following the announcement in December 2008 that the U. S. economy had been in a recession since December 2007, Congress and President Obama passed the American Recovery and Reinvestment Act (ARRA) into law in February 2009. The ARRA cut taxes by $288 billion, increased government spending by $275 billion, and increased transfer payments by $224 billion. Although not fully implemented, the majority of the government spending would take place in 2010 and 2011. 1. Was the ARRA an example of discretionary fiscal policy or nondiscretionary fiscal policy

The risk-free rate is 7% and the expected rate of return on the market portfolio is 11%. a. calculate the required rate of return on a security with a beta of 1.92. (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) b. if the security is expected to return 15%, is it overpriced or underpriced?

During which of the following phases of the business cycle does the real gdp fall? a. trough b. expansion c. contraction d. peak

Garrett is an executive vice president at samm hardware. he researches a proposal by a larger company, maximum hardware, to combine the two companies. by analyzing past performance, conducting focus groups, and interviewing maximum employees, garrett concludes that maximum has poor profit margins, sells shoddy merchandise, and treats customers poorly. what actions should garrett and samm hardware take? a. turn down the acquisition offer and prepare to resist a hostile takeover. b. attempt a friendly merger and use managerial hubris to improve results at maximum. c. welcome the acquisition and use knowledge transfer to impart sam hardware's management practices. d. do nothing; the two companies cannot combine without samm hardware's explicit consent.