If the multiplier is 10, then the marginal propensity to consume (MPC) is
A) 9. B) 1. C) 0.9. D) 0.1.
C
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According to public choice theory, policymakers
A) act in ways to bring about an equitable distribution of society's wealth. B) act in ways to maximize economic efficiency. C) place the interests of the public above their own self-interest. D) are likely to pursue their own self-interest, even if their self-interest conflicts with the public interest.
Maximizing the level of output for a given total cost of production
A) necessitates using only relatively low-priced inputs. B) will maximize total revenue. C) is equivalent to producing the profit maximizing output level. D) is equivalent to minimizing cost for a given level of output.
Which of the following caused pre-1984 volatility in residential construction?
A) financial regulations B) tax cuts C) currency volatility D) interest rates
The Canadian experience with inflation and unemployment in the early 1990s has this to say about policy rules:
A) A central bank independent of political pressure may thereby not be serving the public's politically-revealed preferences. B) A central bank bowing to political pressure cannot get the inflation rate below the unemployment rate. C) A constant-growth-rate-of-money rule cannot stabilize inflation if unemployment is allowed to vary substantially. D) A constant-growth-rate-of-high-powered-money rule allows too much variation in the growth of the actual money supply to hold down inflation.