As the marginal propensity to consume (MPC) decreases, the spending multiplier:
a. increases.
b. decreases.
c. remains constant.
d. becomes indefinable.
b
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Compared to the natural rate of unemployment, the actual unemployment rate is
A) always lower. B) always higher. C) always the same. D) higher in periods when GDP fails to grow at its normal rate.
Implicit costs are ________ and explicit costs are ________
A) costs that involve spending money; also costs that involve spending money B) nonmonetary costs; costs that involve spending money C) costs that involve spending money; nonmonetary costs D) nonmonetary costs; also nonmonetary costs
If the ________ of a forecast outweighs its ________, the forecast can ________ a firm's profit.
A) cost; benefit; double B) cost; benefit; increase C) benefit; cost; increase D) benefit; cost; decrease
Unions tend to want import restrictions because
A) imports are usually of inferior quality. B) they can increase the wages for union workers by increasing the productivity of union workers when the workers aren't worried about foreign competition. C) the restrictions also reduce the number of immigrants that can enter the country and decrease the supply of nonunion labor. D) the restrictions decrease the demand for non-union made goods, increasing the demand for union made goods.