The larger the value of the marginal propensity to save (MPS)
A) the larger is the value of the marginal propensity to consumption (MPC).
B) the smaller is the value of the multiplier.
C) the larger is the value of the multiplier.
D) the larger is the value of autonomous consumption.
B
You might also like to view...
In the view of human capital theorists, educational institutions are factories that take less productive workers as their raw materials and create more productive workers as output
a. True b. False Indicate whether the statement is true or false
The models used in economics:
A) are usually limited to variables that are directly related. B) are essentially not reliable because they are not testable in the real world. C) are of necessity unrealistic and have no relationship to the real world. D) emphasize basic relationships by abstracting from complexities in the everyday world.
According to the specialized-factor pattern, the more a factor is concentrated in the production of a product, the more it stands to gain from an increase in the price of this product.
Answer the following statement true (T) or false (F)
Refer to Scenario 13.2 below to answer the question(s) that follow. SCENARIO 13.2: The government of Stratospheria is currently inviting investors to bid for the exclusive right to provide cable television service to its residents. The market demand for this service is P=55-0.01Q, where Q is the number of households that would subscribe to the cable service and P is the monthly fee charged to the subscribers. The associated marginal revenue curve is MR=55-0.02Q. Fun Cable Company is interested in bidding for the right to provide cable service in Stratospheria. It has a constant average and marginal cost of $5 for providing cable service to each household.Refer to Scenario 13.2. What is the most Fun Cable Company would bid for the franchise?
A. $0 B. $62,500 C. $75,000 D. $112,500