The multiplier principle indicates that if business decision makers become more optimistic about the future and, as a result, increase their investment expenditures by $82 billion, real GDP
a. will increase by less than $82 billion if the economy was initially operating well below capacity.
b. will increase by more than $82 billion if the economy was initially operating well below capacity.
c. will increase by more than $82 billion if the economy was initially operating at full-employment capacity.
d. will decline if the marginal propensity to consume is less than 1.
B
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The argument that rising energy prices caused the decline in U.S. productivity in the 1970s is made less believable due to the
A. falling level of saving in the 1970s. B. falling level of energy prices in the 1980s. C. rising level of energy prices in the 1980s. D. rising level of energy prices in the 1990s.
President Eisenhower considered his main economic task as _______________.
Fill in the blank(s) with the appropriate word(s).
Which type of industry is likely to see more intraindustry trade?
What will be an ideal response?
Which of the following names is given to the corporate bonds that carry the maximum risk?
a. Risky-time bonds b. Failure bonds c. Revelation bonds d. Blue-chip bonds e. Junk bonds