If the income multiplier is equal to 4, then a $25 initial increase in intended investment will lead to a
a. $25 increase in national income
b. $1 decrease in national income
c. $1 increase in national income
d. $100 decrease in national income
e. $100 increase in national income
E
You might also like to view...
If the labor market is in equilibrium and then the labor supply curve shifts rightward
A) there will be a shortage of labor at the original equilibrium wage rate. B) there will be a surplus of labor at the original equilibrium wage rate. C) the equilibrium wage rate will rise. D) there will be a surplus of jobs at the new equilibrium.
The cost of producing an additional unit of a good or service that is borne by the producer of that good or service is the
A) marginal external cost. B) marginal private cost. C) marginal social cost. D) None of the above answers is correct.
Total revenue is the amount:
A. a firm receives from the sale of goods and services. B. a firm keeps after all expenses are paid. C. of sales that get reinvested in the firm. D. a firm receives from dividends.
Which of the following is true of a price floor?
a. A price floor allows supply and demand to function effectively. b. A price floor is set such that the price is not allowed to increase above a certain level. c. A price floor is beneficial to buyers in a market. d. A price floor usually creates a shortage of a good in a market. e. A price floor is set such that the price is not allowed to decrease below a certain level.