The spending multiplier does not apply to investment spending by businesses
a. True
b. False
Indicate whether the statement is true or false
False
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Aggregate demand ________ and shifts the AD curve ________ when ________
A) increases; rightward; government expenditure increases B) increases; leftward; government expenditure increases C) decreases; leftward; foreign income increases D) increases; rightward; future expected profit decreases E) increases; rightward; taxes increase
Sellers who charge different prices to different customers can increase their net revenue
A) by forcing some customers to pay more for the product than it is worth to them. B) by getting high-price customers in effect to subsidize sales to low-price customers. C) if the demand of some customers for the product enables the sellers to build volume by selling at prices below marginal cost. D) if they can prevent customers from reselling to one another.
If consumption is $340 and saving is $20, then disposable income
A. Is $320. B. Is $360. C. Is $340. D. Cannot be determined from the information given.
Recall the Application about incentives to immunize children in developing countries to answer the following question(s). According to this Application, the incentives described were ________ because they ________ the rate of immunizations.
A. effective; increased B. effective; decreased C. not effective; increased D. not effective; decreased