What reduces the size of the government purchases multiplier?
What will be an ideal response?
a decrease in the marginal propensity to consume
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If consumption is defined as C = 2,400 + 0.9Y, then the marginal propensity to consume is 0.9
Indicate whether the statement is true or false
A firm would decide to delist its stock from a foreign stock exchange for all of the following reasons EXCEPT ________.
A) the best price for the stock is in the home market B) there is increased regulation in that particular foreign market C) there are weak market returns on the stock D) there are high trading volumes on the stock
As the volatility of the stock price increases, the time value of the option:
A. decreases. B. increases. C. doesn't change. D. is zero.
Which of the following would likely be considered as a topic of microeconomics?
A) a nation's unemployment rate B) Gross Domestic Product C) the price of apples D) the effects of fiscal policy on the economy