An increase in the marginal propensity to consume (MPC) will, other things constant
What will be an ideal response?
increase the value of the multiplier
You might also like to view...
When the federal government changes purchases and/or taxes to stimulate the economy or rein in inflation, such policy is
A. automatic fiscal policy. B. active monetary policy. C. active federal policy. D. discretionary fiscal policy.
Which expression best represents the break-even level of investment when incorporating labor-augmenting technological change into the Solow growth model?
A) (d + n + g)k B) (d + n)k C) (d + n ) / (k + g) D) (d + n + k) / (gk)
The payoff matrix shows all of the following EXCEPT
A) if both oligopolists choose a high price, each makes $6 million. B) if they both choose a low price, each makes $4 million. C) if one chooses a low price and the other doesn't, the low priced firm will make $8 million. D) if one oligopolist chooses a high price and the other doesn't, the high-priced firm makes $8 million.
The measure of money most closely correlated with the price level and economic activity is:
A. M1. B. L. C. M2. D. M3.