The size of the spending multiplier depends on the marginal propensity to consume (MPC)
a. True
b. False
Indicate whether the statement is true or false
True
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Harmonization of standards refers to
A) the elimination of tariffs and quotas by trading partners. B) common product safety, environment, labor, and fair competition standards agreed upon by trading partners. C) the acceptance or keeping of a trading partner's standards as valid and sufficient by another trading partner. D) separate standards held by different trading partners which other partners refuse to recognize. E) All of the above.
Which of the following is a true statement?
a. The LDC classification is of the questionable accuracy. b. GDP per capita ignores the degree of income distribution. c. GDP per capita is affected by exchange rate changes. d. GDP per capita does not account for the difference in the cost of living among nations. e. All of these are true.
The degree to which people have access to goods and services that make their lives easier, healthier, safer, and more enjoyable is called the:
A. scarcity standard. B. standard of living. C. microeconomic standard. D. global standard.
Critics of active monetary and fiscal policy emphasize
a. that policy affects the economy with a lag and our ability to forecast future economic conditions is poor. b. "leaning against the wind" of economic change to stabilize the economy. c. cutting government spending, raising taxes, and reducing the money supply when aggregate demand is excessive. d. boosting government spending, lowering taxes, and increasing the money supply when aggregate demand is low.