An increase in the marginal propensity to consume (MPC) leads to a increase in the spending multiplier
a. True
b. False
Indicate whether the statement is true or false
True
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The key feature of monopolistic competition that distinguishes it from perfect competition is
A) many sellers. B) barriers to entry. C) interdependency. D) product differentiation.
The poverty rate has hovered between ________ since the middle 1960s.
A. 16-20% B. 20-25% C. 5-10% D. 11-15%
Keynesians believe that the most important shocks for affecting the business cycle are
A) productivity shocks. B) aggregate supply shocks. C) aggregate demand shocks. D) government spending shocks.
A drought causes most fruit crops to fail, decreasing the amount of available fruit. The fruitcake market would see:
A. an increase in the supply of fruitcake. B. a decrease in the supply of fruitcake. C. no change in the supply of fruitcake, but the demand would increase. D. no change in the supply of fruitcake, but the demand would decrease.