An initial increase in investment spending will generate:
a. More of an increase in income than the initial increase because of the multiplier effect
b. Less of an increase in income than the initial increase because of the multiplier effect
c. Less of an increase in income than the initial increase because of the net export effect
d. More of an increase in income than the initial increase because of the net export effect
a. More of an increase in income than the initial increase because of the multiplier effect
You might also like to view...
Suppose that the basket of goods purchased by the typical consumer costs $188.80 this year and it cost $160 in the base year. The CPI this year would be
A) 28.8. B) 85.11. C) 118.0. D) 348.8.
A Treasury security with an original maturity of twenty years is called a
A) bond. B) note. C) bill. D) debenture.
The demand for pizzas in a large town is written as:
Qd = 120 - 10P + 5Pb - 0.5Ps - 10Y, where Qd is the quantity demanded, P is the price, Pb is the price of burritos, Ps is the price of soft drinks sold in the pizza restaurants, and Y is personal income per month (in thousand dollars). If there is a $1,000 increase in personal income, how will the Qd change? A) increase by 10 B) decrease by 10 C) unchanged D) not enough information provided
The economic functions of government include
A. setting wages in the public sector. B. protecting property rights. C. welfare. D. determining prices.