In explaining the upswing (or recovery) phase of internally induced cycles, the income multiplier causes national income to increase, which
a. decreases investment, cutting short the upswing phase
b. increases investment, prolonging the upswing phase
c. increases saving, cutting short the upswing phase
d. decreases saving, prolonging the upswing phase
e. leads to equilibrium and the end of the upswing phase
B
You might also like to view...
People's best guesses about returns on assets are called
A) expected returns. B) liquidity. C) risk. D) the term structure of returns.
All of the following costs will vary depending on the geographic location of a firm's plant except which one?
A) U.S. corporate taxes B) traffic regulations involving large trucks C) wages D) land prices
At any price below the equilibrium price, the quantity demanded exceeds the quantity supplied, and the price tends to rise.
a. true b. false
One way the government can boost the economy out of a recession is:
A. with public announcements telling the public to save their money. B. by increasing government spending. C. by setting price ceilings on most goods so people can afford them. D. None of these will help an economy in recession.