If the marginal propensity to consume is 4/5, then a decrease in government spending of $1 billion decreases the demand for goods and services by $5 billion
a. True
b. False
Indicate whether the statement is true or false
True
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A horizontal merger is one in which the merging firms:
a. are about the same size. b. produce the same good in the same industry. c. will control greater than 50 percent of the market. d. have never directly competed in the past. e. will pay twice as much in taxes.
The phrase "a weaker U.S. dollar" means that the dollar
a. has been depreciating b. has been appreciating c. is not in equilibrium on the foriegn exchange market d. is fluctuating greatly e. buys less than one unit of a foreign currency
________: percent change in quantity supplied with respect to a percent change in the price of the product
Fill in the blank(s) with correct word
If the economy is on the steep portion of the AS curve and government spending increases, ________ crowds out ________.
A. planned investment; consumption B. government spending; planned investment C. planned investment; government spending D. consumption; planned investment