When the MPC gets smaller, the spending multiplier:
a. gets larger.
b. gets smaller.
c. stays the same.
d. gets smaller at low real GDP, and larger at high real GDP.
e. gets larger at low real GDP, and smaller at high real GDP.
b
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A temporary increase in income today leads to
A) a small increase in current consumption. B) a large increase in current consumption. C) a small decrease in future consumption. D) a large decrease in future consumption.
The thrust of government fiscal policy is expansionary when:
(a) Expenditure and taxation are increased. (b) Government expenditure is reduced and taxation is increased. (c) Expenditure and taxation are decreased. (d) Government expenditure is increased and taxation is reduced.
If a household's income falls from $26,000 to $24,000 and its savings fall from $1,000 to $500, then its _____
Fill in the blank(s) with the appropriate word(s).
Scott and Cindy both produce only pizza and tacos. In one hour, Scott can produce 20 pizzas or 40 tacos. In one hour, Cindy can produce 30 pizzas or 40 tacos. Based on these data,
A) Cindy has a comparative advantage at producing tacos. B) Scott has a comparative advantage at producing tacos. C) Cindy and Scott have the same comparative advantage in producing tacos. D) neither Cindy nor Scott has a comparative advantage in producing tacos. E) Cindy and Scott have the same comparative advantage in producing pizzas.