Refer to the above table. The multiplier in this economy is:
Answer the following question based on the table below which illustrates the multiplier process resulting from an autonomous increase in investment by $5.
A. 2
B. 3
C. 4
D. 5
C. 4
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For network externalities to occur
A) the government has to create new laws. B) deadweight loss must be minimized. C) there must be a critical mass of users. D) there must be a positive benefit to society.
The Japanese demand curve for dollars is downward-sloping because a:
A. higher number of yen per dollar means U.S. goods are cheaper in Japan. B. lower number of yen per dollar means U.S. goods are cheaper in Japan. C. lower number of yen per dollar means U.S. goods are more expensive in Japan. D. lower number of yen per dollar means U.S. goods are less expensive in the U.S.
Diseconomies of scale exist over the range of output for which the long-run average cost curve is:
A. constant. B. falling. C. rising. D. subject to diminishing returns.
A natural monopoly
A. exists only when it is regulated. B. always experiences diseconomies of scale. C. has one lowest-cost producer in the industry. D. has no market demand in the long run.