If the MPC is .8, the multiplier is
A. .2.
B. .8.
C. 1.
D. 5.
D. 5.
You might also like to view...
People base their labor supply on the ________ because they care about ________
A) real wage; what their earnings will buy B) real wage; the equality of money wages and the price level C) money wage; a surplus of labor D) money wage; the amount of labor firms demand
Which of the following fiscal policies cause a decrease in aggregate expenditures?
A. An increase in taxes and a decrease in government spending. B. An increase in transfer payments and an increase in government spending. C. An increase in transfer payments and a decrease in taxes. D. A decrease in taxes and an increase in government spending.
The measure of final goods and services produced in the United States is the
A. Per capita GDP in the United States. B. Total sales of all goods during the year. C. GDP of the United States. D. Percentage change in the GDP of the United States.
Mrs. Arnold is spending all her money income by buying bottles of soda and bags of pretzels in such amounts that the marginal utility of the last bottle is 60 utils and the marginal utility of the last bag is 30 utils. The prices of soda and pretzels are
$.60 per bottle and $.40 per bag respectively. It can be concluded that: A. the two commodities are substitute goods. B. Mrs. Arnold should spend more on pretzels and less on soda. C. Mrs. Arnold should spend more on soda and less on pretzels. D. Mrs. Arnold is buying soda and pretzels in the utility-maximizing amounts.