An upward-sloping LM curve implies that the expenditure multiplier, when compared with the simple Keynesian expenditure multiplier, is
A) smaller.
B) larger.
C) equal.
D) equal to the inverse of the simple multiplier.
A
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Classical growth theory predicts that increases in
A) competition increase economic growth. B) real GDP per person are temporary and not sustainable. C) resources permanently increase real GDP per person. D) real GDP per person are permanent and sustainable. E) resources permanently increase labor productivity.
In a study session, your friend says, "Demand is elastic if the percentage change in the price exceeds the percentage change in quantity demanded." Is your friend correct?
What will be an ideal response?
One possible reason the U.S. income distribution has become more unequal is
A) information technology has decreased the demand for unskilled labor. B) information technology has increased the demand for unskilled labor. C) information technology has increased the supply of unskilled labor. D) information technology has decreased the supply of unskilled labor.
Average tariff rates are highest for
A) high-income countries. B) middle-income countries. C) low-income countries. D) industrialized countries.