The demand for a good increases when the price of a substitute ________ and also increases when the price of a complement ________
A) rises; rises
B) rises; falls
C) falls; rises
D) falls; falls
B
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High opportunity costs go hand in hand with high money costs in a properly functioning economy.
Answer the following statement true (T) or false (F)
The expenditure multiplier is typically
A) equal to 1. B) greater than 1. C) negative. D) less than 1 but greater than 0. E) greater than 10.
If an economy consumes 75 percent of any increase in real GDP and spends 10 percent of this increased income on imports, then a decline in government spending by $60 million will result in a total reduction in equilibrium income of:
a. $171.43 million. b. $123.47 million. c. $151.63 million. d. $73.47 million. e. $71.43 million.
According to the Keynesian view, an increase in the money supply will cause interest rates to rise, causing levels of investment to fall
Indicate whether the statement is true or false