If consumers spend 75 cents out of every extra dollar received, the:
A. MPS is 0.75.
B. MPC is 0.25.
C. Multiplier is 4.
D. Multiplier is 7.5.
C. Multiplier is 4.
You might also like to view...
Limited liability can best be defined as the legal provision that
A) shields owners of a corporation from losing more than what they invested in a firm. B) protects bond holders from being sued by other creditors. C) gives holders of preferred stock priority over holders of common stock. D) reduces the exposure of sole proprietorships to law suits.
Two-part tariffs offer a mechanism whereby the firm can
A) charge two different prices to distinct groups of customers. B) collect two times as much from consumers as a single-price monopoly can. C) capture some or all of the consumer surplus. D) reduce some of its fixed costs.
If M stands for the money stock, P for the price level, and Y for real GDP, then velocity, V, equals:
A. (M × P)/ Y. B. (P × Y)/M. C. (M × Y)/ P. D. (P × M)/ Y.
An industry is in ________ if firms have no incentive to enter or exit in the ________ run.
A. equilibrium; long B. disequilibrium; long C. disequilibrium; short D. equilibrium; short