If the marginal propensity to consume (MPC) is 0.8, the spending multiplier will be
A. 0.2.
B. 8.
C. 5.0.
D. 4.0.
Answer: C
You might also like to view...
Limit pricing refers to
A) the fact that a monopoly firm always sets the highest price possible. B) how the price is determined in a kinked demand curve model of oligopoly. C) a situation in which a firm might lower its price to keep potential competitors from entering its market. D) none of the above.
Exhibit 14-4 Aggregate supply and demand curves
?
In Exhibit 14-4 which of the following is not consistent with a shift in the aggregate demand curve from AD1 to AD2?
A. a decrease in consumer spending B. an increase in investment C. an increase in government spending D. an increase in net exports
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point A to Point D. This could be explained by
A. an increase in economic growth. B. a change in society's preferences for motorcycles versus hybrid cars. C. a reduction in unemployment. D. an improvement in technology.
Published in 1776, ________ was written by Adam Smith
A) "An Inquiry into the Nature and Causes of the Wealth of Nations" B) "The Declaration of Economics" C) "The General Theory of Employment, Interest, and Money" D) "The Communist Manifesto"