As the marginal propensity to consume (MPC) decreases, the spending multiplier:
a. increases.
b. decreases.
c. remains constant.
d. becomes undefinable.
b
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The U.S. Department of Agriculture defines the official poverty level as
a. the bottom 10 percent of the income distribution b. the poorest 2 million households c. income less than $15,000 d. income equal to three times the estimated cost of a nutritionally adequate diet e. being unemployed for more than two months
To economists, which of the following literally means the same thing as an outflow of financial capital?
a. trade surplus b. trade deficit c. current account surplus d. current account deficit
Which of the following is an explanation for why some poor countries suffer from lower productivity growth?
A. Too much saving has led to the accumulation of capital in poor countries. B. The adoption of technology too quickly hurts the labor force in poor countries. C. Primary education is universal in poor countries. D. Poor countries have lower capital stocks.
Which of the following is not generally considered to be a major cure for insolvency?
a. Equity infusions. b. Expansionary monetary policies. c. Financial restructuring. d. New management strategies. e. Asset liquidations.