The multiplier principle explains how
a. any change in the economy will be magnified.
b. $1 invested will increase GDP by more than $1.
c. expenditures and incomes increase as investment increases.
d. All of the above are correct.
d
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If Q = K1/3L2 the MPL is
a. constant b. diminishing c. increasing
We're more likely to make mistakes with situations we face:
A. often, because we pay less attention. B. often, because they involve low payoffs. C. infrequently. D. with little warning.
The law of diminishing marginal utility implies that the marginal utility of my fifth hot dog is less than the marginal utility of my second soda
Indicate whether the statement is true or false
Which of the following does not increase (i.e., shift) the supply curve of real loanable funds?
a. Open market purchases of government securities by the central bank. b. A decrease in the discount rate. c. A decrease in the reserve ratio by the central bank. d. A decrease in the preferred asset ratio for near money (N/D), due to a shift in household preferences. e. All of the above increase the supply.