An increase in the marginal propensity to consume necessarily reduces the marginal propensity to save
a. True
b. False
Indicate whether the statement is true or false
True
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According to Prebisch and other ISI theoreticians, countries should begin to shift their comparative advantage away from primary commodity production by first producing
A) industrial goods such as pumps and generators. B) complex consumer goods such as autos and appliances. C) advanced industrial goods such as chemical and electronics. D) simple consumer goods such as food products and textiles. E) minerals and agricultural products.
A disadvantage of moving too quickly is that
A) costs of entry are higher. B) the likelihood of misunderstanding the demand is greater. C) followers gain an advantage by learning from the first-mover. D) All of the above.
At very high levels of output, total cost tends to:
A. decrease at an increasing rate. B. increase at a constant rate. C. increase at an increasing rate. D. increase at a decreasing rate.
Fiscal policy includes changing the level of household taxes.
Answer the following statement true (T) or false (F)