As the MPS decreases, the multiplier will
A. decrease.
B. increase.
C. remain constant.
D. either increase or decrease depending on the size of the change in investment.
Answer: B
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An American farmer buys an irrigation system from a Norwegian irrigation company based in Oslo. To Americans, the irrigation system is a(n)
A) import. B) export. C) quota. D) tariff.
When economists disagree about whether the government should tax a household's income or its consumption, they are expressing a difference in
When her $1,000 time deposit expires, Suneeta decides not to renew the time deposit and opts to cash out. As a result of her transaction
A) M1 and M2 increase. B) M1 increases and M2 decreases. C) M1 is unaffected and M2 decreases. D) M1 increases and M2 is unaffected.
New growth theory argues that
A. growth relies on maintaining lower growth rates of population, especially in less developed countries. B. technology cannot be looked at as an outside factor without an explanation of what drives it. C. growth is due to the proper government policies concerning interest rates. D. technology is the key factor that explains growth but technology is beyond economic explanation itself.