Assuming a simple Keynesian multiplier, and given an increase in planned investment of $100 billion, the effect on total output will be greater than $100 billion only if the
A) MPS is greater than zero.
B) MPC is zero.
C) MPS is less than zero.
D) MPC is greater than one.
A
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Keynes believed that the way to prevent recessions and depressions was to
A) increase aggregate demand through expansionary fiscal policy. B) maximize the crowding out effect. C) only change tax rates as a means of regulating the economy. D) reduce spending when there is a recessionary ga
In a simultaneous move game, the number of possible pure strategies a player can play is equal to the number of actions he can choose to take.
Answer the following statement true (T) or false (F)
Some reasons that firms may experience diseconomies of scale include
a. the firm is too small to take advantage of specialization b. large management structures may be bureaucratic and inefficient c. if there are too many employees, the work place becomes crowded and people become less productive d. having more employees doesn't mean there will be more raw materials to use in production e. average fixed costs begin to rise again
Better health allows people to work harder, which raises a country's total income. This indicates that in effect, better health
A) is a primary cause of price increases. B) reduces the incentive to work. C) shifts out a country's production possibilities frontier. D) increases consumer surplus.