The multiplier increases as the MPC increases
Indicate whether the statement is true or false
TRUE
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To maximize its profit, in the short run a perfectly competitive firm decides
A) what price to charge for its product. B) what quantity of output to produce. C) whether to exit the market. D) whether to increase the size of its plant. E) how much advertising it should undertake.
Intended investment is
a. always equal to saving b. what producers hope will equal saving c. the investment producers actually make d. the investment producers had planned to make but may have ended up not making e. what producers hope ends up as inventory
The completion of the American national railroad network in the second half of the 19th century led to all of the following except
A. that it enabled manufacturers to sell their products all over the country. B. mass consumption. C. increased prices of goods sold which led to more investment and more jobs. D. higher wages.
When the Federal Reserve purchases treasury securities in the open market,
A. The sellers of such securities by new securities in the open market and there is an increase in bank reserves B. The sellers of such securities deposits the funds in their banks and bank reserves increase C. The buyers of those securities pay for them with checks drawn on their bank account and bank reserves increase