The larger the MPC, the ________ the expenditure multiplier and the ________ the effect of a change in expenditure on equilibrium output.
A. larger; smaller
B. smaller; larger
C. larger; larger
D. smaller; smaller
Answer: C
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If other factors are held constant, an increase in the price level
A) causes desired net export spending to rise. B) causes the real value of the money to increase. C) causes desired net export spending to fall. D) induces people to spend their money faster.
A tariff on imported peanuts ________ the quantity of peanuts imported and ________ the domestic price of peanuts
A) decreases; decreases B) decreases; increases C) increases; lowers D) does not change; increases
Find examples of scarcity in today's headlines
What will be an ideal response?
During a recession, we generally see
real GDP rising and unemployment rising real GDP falling and unemployment rising real GDP rising and inflation rising real GDP rising and inflation staying stable