If the government spending multiplier is 7, the tax multiplier must be
A) -6. B) -3. C) 3. D) 7.
A
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Using the UIP equation, what would happen to the spot rate for euros if the dollar-euro exchange rate is expected to appreciate in the future?
a. The spot rate to purchase euros would rise (dollar depreciation). b. The spot rate to purchase euros would fall (dollar appreciation). c. The spot rate to purchase euros would remain unchanged. d. The spot rate to purchase euros would remain unchanged today, but rise in the future (dollar depreciation)
The ______ is a theory describing how a budget deficit reduces investment spending and long-term economic growth.
a. Fannie Mae effect b. upside down effect c. Dodd-Frank effect d. crowding-out effect
Which of the following statements is TRUE about the market and individual firm's supply curve for labor?
A) The market supply curve is perfectly elastic and the individual firm's supply curve is perfectly inelastic. B) The market supply curve is perfectly inelastic and the individual firm's supply curve is perfectly elastic. C) The market supply curve is more elastic than the firm's supply curve. D) The market supply curve is more inelastic than the firm's supply curve.
When marginal utility is __________, total utility is __________.
A. positive; increasing B. zero; maximized C. negative; decreasing D. All of the choices are correct.