The size of the spending multiplier depends on the marginal propensity to consume (MPC)
a. True
b. False
Indicate whether the statement is true or false
True
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An indication that Insurance companies anticipate adverse selection is
a. they do not require a deductible b. they do not classify clients into different risk types according to their claim history c. they classify clients into different risk types according to pre-existing conditions d. they do not require a co-payment
Fixed exchange rates allow countries to formulate their economic policies independent of other nations
a. True b. False Indicate whether the statement is true or false
Which would not be considered as capital by an economist?
A. An automobile used by a salesperson at General Electric B. A crane used by a building contractor C. A razor used by a barber D. A share of corporate stock issued by General Motors
A competitive market will
A. create excess demand because wants exceed needs. B. move towards equilibrium because producers set the prices. C. create excess supply because producer want profits. D. move towards equilibrium quantity because both producers and consumers act in their own best interest.