The effect of an initial spending change causing a larger change in overall output is:
A. the multiplier effect
B. crowding out.
C. the income effect.
D. the substitution effect.
A. the multiplier effect
You might also like to view...
When Italy buys Boeing jets, the price Italy pays is ________ if it produced its own jets, and the price Boeing receives is ________ than it could receive from an additional U.S. buyer
A) lower than; higher B) higher than; higher C) the same as; higher D) lower than; lower E) higher than; lower
Refer to the above table. What is the absolute price elasticity of demand when a price rises from $8 to $8.50?
A) 5.15 B) 1.94 C) 0.515 D) 0.194
Firm A, a small ancillary firm, needs funds to purchase new machinery for its factory. The best way the firm can raise funds is: a. by taking credit from a credit union. b. by issuing stocks
c. by issuing bonds. d. by taking out a bank loan.
In a closed economy, income equals:
A. consumption minus savings. B. consumption plus net exports. C. consumption plus savings. D. savings plus investment.