The smaller the mpc, the ________ the income-expenditure multiplier and the ________ the effect of a change in autonomous spending on short-run equilibrium output.
A. larger; larger
B. smaller; larger
C. larger; smaller
D. smaller; smaller
Answer: D
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International capital flows tend to strengthen the effects of interest rate changes on aggregate demand
a. True b. False Indicate whether the statement is true or false
As the dollar price of a foreign currency (for example, dollars per yen) increases, __________ dollars will be demanded by foreigners, U.S. goods will be __________ expensive for foreigners, __________ U.S. goods will be purchased by foreigners, and __________ foreign currency will be supplied to the foreign exchange market
A) more; less; more; more B) more; less; more; less C) fewer; more; fewer; less D) fewer; more; fewer; more
The term "bread and butter unionism" is closely associated with
A. the 8-hour day and the elimination of the wage system. B. better wages, hours, and working conditions. C. government ownership of the means of production. D. the abolition of factory work and a return to farming.
In the absence of economies of scale, advertising and product differentiation:
A. reduce social welfare by increasing average total cost. B. benefit consumers if product variety increases. C. increase social welfare by giving consumers a greater variety of goods to choose from. D. have an uncertain effect on welfare because they increase both average total cost and product variety.