The multiplier will be greater, other things being equal:
a. the smaller the fraction of each dollar earned that goes to taxes
b. the larger the MPC.
c. the smaller the fraction of each dollar of disposable income that goes to saving.
d. all of the above are true.
d
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Holding other factors constant, if new technology becomes available that allows machines to produce manufactured goods more quickly and with fewer defects, then the real interest rate will ________ and the equilibrium quantity of national saving and investment will ________.
A. increase; decrease B. decrease; increase C. increase; not change D. increase; increase
Land owners with secure and protected property rights are motivated to
(a) use their land productively. (b) maintain their land and its value as long as the land is owned privately and profits are realized by the land owners. (c) not hold their land idle if they face property taxes due to costs imposed by the tax system. (d) link land ownership and personal freedom.
In the above table, the trade balance on goods and services for Country X is ________ billion dollars
A) +25 B) -100 C) +100 D) -25
The deviation of unemployment from its natural rate is called cyclical unemployment
a. True b. False Indicate whether the statement is true or false