If that the marginal propensity to save (MPS) increased from 0.20 to 0.25, this would cause the multiplier effect to
A) increase. B) decrease.
C) stay the same. D) None of the above is correct.
B
Economics
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Empirical evidence refers to:
A) a set of facts established by observation and measurement. B) the process of developing and testing models. C) a proposed explanation for a phenomenon. D) a simplified representation of reality.
Economics
When a deadweight loss occurs in a market, we can be certain that
A) taxes have been imposed in a market. B) the market is a monopoly. C) there underproduction in the market. D) the entire society experiences a loss.
Economics
Public funding is not a part of colonial history
Indicate whether the statement is true or false
Economics
To finance a budget deficit the federal government borrows funds
Indicate whether the statement is true or false
Economics