In reality, the simple spending multiplier [1/(MPS+MPI)] is applicable only to countries whose imports are a substantial fraction of income in foreign countries
a. True
b. False
Indicate whether the statement is true or false
False
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Looking at the table above, real wages ________ from 2011 to 2012, and real wages ________ from 2012 to 2013.
A) fell; rose
B) fell; fell
C) rose; fell
D) rose; rose
The table below shows the utility schedule for a consumer of candy bars. Candy Bars ConsumedTotal Utility001529312414515615713The consumption of which candy bar yields the greatest marginal utility?
A. seventh B. sixth C. fifth D. first
The demand for a product produced in a perfectly competitive market permanently increases. In the short run, the price
A) rises and each firm produces less output. B) rises and each firm produces more output. C) does not change as new firms enter the industry. D) does not change because each firm produces more output.
The composition of M2 as of December 2010 includes saving deposits at savings banks and credit unions
a. True b. False Indicate whether the statement is true or false