The larger the MPS, the smaller the value of the multiplier
Indicate whether the statement is true or false
TRUE
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The sale of government bonds by the Federal Reserve Banks to commercial banks will ________.
A. increase aggregate demand B. decrease aggregate supply C. decrease aggregate demand D. increase aggregate supply
In the above figure, curve A is the ________ curve and curve C is the ________ curve
A) total variable cost; total fixed cost B) total cost; total fixed cost C) total fixed cost; total variable cost D) total cost; total variable cost E) total variable cost; total cost
If it does not shut down, a perfectly competitive firm produces where marginal cost is equal to the marginal revenue
A) only in the short run. B) only in the long run. C) always to maximize its profit. D) only if it is not possible to produce where price equals average variable cost. E) only if it is not possible to produce where price is greater than average total cost.
The main advantage of using multiple regression analysis over differences in means testing is that the regression technique
A) allows you to calculate p-values for the significance of your results. B) provides you with a measure of your goodness of fit. C) gives you quantitative estimates of a unit change in X. D) assumes that the error terms are generated from a normal distribution.