If the marginal propensity to consume (MPC) is 0.50, the value of the spending multiplier is:
a. 5.
b. 1.
c. 2.
d. 5.
c
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Holding other factors constant, a technological improvement that increases the marginal product of capital will:
A. decrease national saving. B. decrease investment. C. increase investment. D. increase national saving.
The Solow model is used to explain ________
A) why some economies experience higher rates of growth than others B) the relationship between price and quantity demanded C) the relationship between the rate of inflation and the rate of unemployment D) the notion of opportunity cost
The law of diminishing return holds that as additional increments of resources are:
a. added to a certain purpose, the marginal benefit from those additional increments will remain flat. b. removed to a certain purpose, the marginal benefit from those additional increments will decline. c. added to a certain purpose, the marginal benefit from those additional increments will incline. d. added to a certain purpose, the marginal benefit from those additional increments will decline.
If a monopolist engages in price discrimination, it is with the goal of:
a. improving goodwill with the public. b. increasing profit. c. lowering cost. d. making the demand for its good less elastic.