If the MPC = 0.75, the government spending multiplier would be
A) 0.25. B) -7.5. C) 4. D) 25.
C
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A central bank's international reserves consists of its holdings of
A) gold. B) silver and gold. C) foreign assets and gold. D) domestic assets and precious metals. E) foreign and domestic currency holdings.
According to the Keynesian model, the economy will be in equilibrium when
a. the growth of the money supply is constant over time. b. planned leakages equal planned injections. c. the government’s budget is balanced. d. the labor force is fully employed.
When natural monopoly is present in an industry, the per-unit costs of production will be
a. lowest when there are a large number of producers in the industry. b. lowest when a single firm generates the entire output of the industry. c. lower for small firms than for large firms. d. minimized at the output that maximizes the industry's profitability.
On the "demand side" of a market, consumers indicate what they are willing to buy, in what quantity and at what price.
Answer the following statement true (T) or false (F)