If the marginal propensity to save (MPS) is 1/8, the value of the simple spending multiplier is:
a. 8
b. 1/8.
c. 2.
d. 1/2.
e. 4.
a
You might also like to view...
A good example of a policy to increase an economy's saving rate is ________
A) to reduce poverty B) to increase the economic growth rate C) to increase government spending D) to reduce interest rates E) to increase sales taxes
A manager believes there is a 10 percent chance their firm will have to pay $1,000,000 and a 90 percent chance they will be found innocent and pay nothing except the legal fees of $200,000. If the manager chooses to not settle for $300,000 and to enter the litigation instead, which of the following is true?
A) The manager is a risk lover. B) The manager is risk averse. C) The manager is risk neutral. D) The manager is risk intolerant.
The analysis is externally valid if
A) the statistical inferences about causal effects are valid for the population being studied. B) the study has passed a double blind refereeing process for a journal. C) its inferences and conclusions can be generalized from the population and setting studied to other populations and settings. D) some committee outside the author's department has validated the findings.
If services are purchased from others that were once performed internally, then a firm has
A) downsized. B) outsourced. C) reduced the economies of scope. D) experienced diseconomies of scale.