An increase in the MPC
a. increases the multiplier, so that changes in government expenditures have a larger effect on aggregate demand.
b. increases the multiplier, so that changes in government expenditures have a smaller effect on aggregate demand.
c. decreases the multiplier, so that changes in government expenditures have a larger effect on aggregate demand.
d. decreases the multiplier, so that changes in government expenditures have a smaller effect on aggregate demand.
a
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During the first 6 months of 2008, the United States imported more than 1.6 billion pounds of coffee. Suppose the United States is considering placing trade restrictions on the importation of coffee
What would be a potential consequence of such a trade restriction? A) The U.S. price of coffee would increase. B) U.S. consumers would drink more coffee. C) The quantity of coffee imported into the United States would increase. D) U.S. consumer surplus from coffee would increase.
Refer to Figure 10.2. In moving from the competitive level of output and price to the monopoly level of output and price, the monopolist is able to add to producer surplus:
A) the area BCEF. B) the area BCEF less the area GFH. C) the area BCEH. D) the area BCEH less the area GFH. E) none of the above
Cap rollover
What will be an ideal response?
The growth of real GDP per person in Australia between 1964 and 2000 was the result of:
A. growth in average labour productivity only B. growth in the share of population employed only C. growth in both average labour productivity and the share of population employed D. growth in neither average labour productivity nor the share of population employed