The numerical value of the multiplier will be smaller the:
A. larger the average propensity to consume.
B. larger the slope of the saving schedule.
C. larger the slope of the consumption schedule.
D. smaller the slope of the saving schedule.
B. larger the slope of the saving schedule.
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If the price system is allowed to function without interference and a surplus occurs, quantity demanded will _____________ and quantity supplied will _____________ until the price falls to its equilibrium.
A. rise; rise B. fall; fall C. rise; fall D. fall; rise
A tax that fell very heavily on the rich and the upper middle class might shift the Lorenz curve from
A. J to K.
B. K to L.
C. L to K.
D. I to J.
Which of the following does not meet the economic definition of saving?
A. A graduate assistant spends all of his income on tuition B. A student deposits money in her savings account C. A professor spends less than he makes each month D.The president's secretary puts cash under her mattress
Using the equation of exchange and assuming full employment and a constant velocity of money, a decrease in the required reserve ratio would result in a
A. Lower velocity. B. Lower price level. C. Lower quantity of real output. D. Higher price level.