The basic reason for the multiplier effect is that when you spend money,
A. another person receives income.
B. another person must pay for it.
C. your money balances are reduced.
D. your net worth decreases.
Answer: A
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In the above figure, the x-coordinate of point b is
A) 1. B) 2. C) 3. D) 14.
Bookstores often offer annual memberships that allow customers to purchase books at a 10% discount. Explain why this may increase profits of the bookstore
What will be an ideal response?
The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
U.S. exports are included in aggregate demand because the exports contribute to the total ______.
a. spending on goods and services by U.S. consumers b. U.S. demand for foreign goods and services c. U.S. sales of goods and services by foreign producers d. demand for U.S. goods and services