The multiplier is defined as the ratio of a change in income to the
A) marginal propensity to save.
B) marginal propensity to consume.
C) change in the marginal propensity to consume causing it.
D) change in the marginal propensity to save causing it.
E) change in planned autonomous spending causing it.
E
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Economic analysis is a tool that
A) aids all decision making. B) helps us understand why people make mistakes. C) helps us forgive selfish people. D) makes everyone rich.
In The General Theory of Employment, Interest, and Money, Keynes
A. recommended international trade to increase economic stability after recessions. B. encouraged government actions to shorten the recovery time of recessions.. C. supported free markets. D. observed budget surpluses were necessary fixes following budget deficits.
The monetary transmission mechanism that assumes that money supply growth stimulates the economy primarily by encouraging investment is
A. the post-Keynesian transmission mechanism. B. the interest-rate-based transmission mechanism. C. pre-Keynesian transmission mechanism. D. the classical transmission mechanism.
How much is induced consumption at a disposable income of 4000?
