The multiplier effect indicates that:
A. a decline in the interest rate will cause a proportionately larger increase in investment.
B. a change in spending will change aggregate income by a larger amount.
C. a change in spending will increase aggregate income by the same amount.
D. an increase in total income will generate a larger change in aggregate expenditures.
B. a change in spending will change aggregate income by a larger amount
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Commodity money
A) has value independent of its use as money. B) has little to no value independent of its use as money. C) can be used to purchase commodities, but not services. D) is backed by a valuable commodity such as gold.
The ________ describes the combinations of interest rates and aggregate output for which the quantity of money demanded equals the quantity of money supplied
A) IS curve B) LM curve C) consumption function D) investment schedule
The Phillips curve is a statistical relationship that was misrepresented as showing
a. disequilibrium outcomes of uncoordinated policy. b. alternative equilibrium points that the economy could achieve. c. the unemployment rates necessary to close a recessionary gap. d. the increases in interest rates from different inflation rates.
Ownership in a government bureau is transferable
Indicate whether the statement is true or false