The greater the marginal propensity to consume in the economy, the smaller the spending multiplier

a. True
b. False
Indicate whether the statement is true or false


False

Economics

You might also like to view...

List the characteristics of a monopolistically competitive market

What will be an ideal response?

Economics

A stock market

A. guarantees that a seller of a stock will get the price at which the stock was purchased. B. is used only to sell new stock issues from corporations and not to transfer existing stocks. C. is used only to sell stocks, not to buy stocks. D. gives an individual a chance to invest in stocks without committing funds for long periods of time.

Economics

Figure 10-7 ? Figure 10-8 displays the cost curves of a perfectly competitive firm. Profits at a price of $10 would be approximately

A. $1 per unit. B. $3 per unit. C. $5 per unit. D. $10 per unit.

Economics

Diego's annual income increased from $20,000 to $25,000 . If Diego faces a 40 percent effective marginal tax rate, the $5,000 increase in income will expand his disposable income by

a. $2,000. b. $3,000. c. $3,600. d. $5,000.

Economics