The multiplier is the
A. impact that investment has on the physical capital.
B. concept that the interest rate will induce consumption and investment spending.
C. concept that increases in spending will cause a larger increase in equilibrium GDP.
D. impact that expansionary fiscal policy has on recessions.
Answer: C
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In the short run, if a firm shuts down its maximum loss equals the amount of its fixed cost
Indicate whether the statement is true or false
An oligopolist cares very much about what other firms in her industry are doing
a. True b. False Indicate whether the statement is true or false
Which of the following is true when long-run equilibrium conditions are present in price-taker and competitive price-searcher markets?
a. MR = ATC in both price-taker and competitive price-searcher markets. b. P = ATC in price-taker markets; P = MC in competitive price-searcher markets. c. P = MC in both price-taker and competitive price-searcher markets. d. P = ATC in both price-taker and competitive price-searcher markets.
The Smith family owns an apple orchard in Illinois. The Jones family owns an apple orchard in Wisconsin. A late frost destroys half of the Smith family's harvest for one year. For the Jones family, their
a. transitory income for the year of the frost likely exceeds their permanent income. b. permanent income likely exceeds their transitory income for the year of the frost. c. permanent income will be more affected by the frost than their transitory income. d. Both a and c are correct.