The multiplier is equal to
a. the reciprocal of MPC.
b. the reciprocal of MPS.
c. MPC + MPS.
d. MPC/MPS.
b. the reciprocal of MPS.
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The monopsonist will employ labor to the point at which the
A) marginal factor cost equals the marginal revenue product of labor. B) marginal revenue product equals the wage rate. C) marginal cost of output equals the marginal revenue. D) demand equals the supply of labor.
If the price of bread were zero, a budget line between bread (on the vertical axis) and cheese (on the horizontal axis) would
a. not exist b. be vertical c. coincide with the vertical axis d. be horizontal e. coincide with the horizontal axis
Most economists argue that an effective monetary policy would
a. create money faster during recessions and more slowly during booms. b. create money faster all the time. c. create money more slowly all the time. d. create money faster during booms and more slowly during recessions. e. create money slowly during booms and not at all during recessions.
Making a decision at the margin is __________ an all-or-nothing decision
A) consistent with B) inconsistent with C) the same as making D) conditioned upon making