If the simple spending multiplier is 8, the marginal propensity to consume is _____
a. 1/8
b. 1/4
c. 4/5
d. 7/8
e. 8
d
You might also like to view...
When a bakery manager reports that productivity of the 15 workers at her bakery last month was 1,800 loaves per worker, she is referring to the
A. marginal product of labor. B. total product of labor. C. total product of capital. D. average product of labor.
If the price of train tickets decreases, what will be the impact in the market for bus travel?
A) The quantity of bus travel demanded decreases. B) The demand curve for bus travel shifts to the left. C) The quantity of bus travel demanded increases. D) The demand curve for bus travel shifts to the right.
Consider the following short-run production function: q = 5 - 1/3 . At what level of L do diminishing marginal returns begin? At what level of L do diminishing returns begin?
What will be an ideal response?
Foreign direct investment is
A) the purchase of less than 10 percent of the shares of ownership in a company in another country. B) the purchase of more than 10 percent of the shares of ownership in a company in another country. C) the diversification of purchasing shares in many companies in one country so that risk is kept to a minimum. D) the diversification of purchasing shares in one company in many countries so that risk is kept to a minimum.