The balanced budget multiplier is equal to
a. 1/(1 – MPC)
b. 1/(1 – MPC) + –MPC/(1 – MPC)
c. MPC/(1 – MPC)
d. (1 – MPC)/MPC
e. 2
B
You might also like to view...
The following data relate to the supply schedule of a product.PriceQuantity Supplied$51001020015250203002535030500Over which price range is the elasticity of supply greater than 1?
A. $20 to $25 B. $10 to $15 C. $15 to $20 D. $25 to $30
When a country follows an inward-oriented strategy, it tends to produce:
a. only tertiary goods. b. goods in which it has an absolute advantage. c. only labor-intensive goods. d. goods for which no export barriers exist. e. goods that replace foreign manufactured products.
The wage premium for the average college graduate (vs. the average high school graduate) has gone down significantly in recent years
a. True b. False
The four principal factors that Adam Smith identified as contributing to economic growth are
a. size of the labor force, degree of labor specialization, size of the capital stock, and level of technology b. size of the labor force, degree of labor specialization, size of the capital stock, and natural resource base c. size of the labor force, degree of labor specialization, size of the capital stock and the age of the labor force d. quality of the labor force, degree of labor specialization, size of the capital stock, and level of technology e. size of the labor force, quality of the labor force, degree of labor specialization, and natural resource base