The formula for the multiplier can be written as change in
A. Y/change in I.
B. I/change in Y.
C. Y/change in C.
D. Y/change in GDP.
Answer: A
You might also like to view...
Arguing that economic growth will eventually stop because we will run out of natural resources:
A. ignores the power of markets to recognize shortages and induce changes in behavior. B. must be correct because scarcity exists. C. is supported today by the fact that richer countries have fewer natural resources. D. will only be correct if growth takes the form of newer, more efficient goods and services.
What is a primary determinant of the asset demand for money? I. the interest rate II. the opportunity cost of holding money III. the supply of money
A) I only B) III only C) both I and II D) both II and III
Persistent wage differentials in the U.S. can best be explained by
a. increased immigration of both skilled and unskilled workers b. increased labor-force mobility among the states c. the existence of noncompeting labor markets d. the existence of backward-bending labor supply curves e. the increasing competitiveness of firms in labor markets
The marginal rate of substitution between two goods is given by:
A. the inverse of the slope of an indifference curve. B. the slope of a line tangent to an indifference curve. C. negative one times the inverse of the slope of an indifference curve. D. negative one times the slope of a line tangent to an indifference curve.