If the MPS = 0.1, the multiplier would be:
A. 10.
B. 1
C. 9
D. 0.9
Answer: A
You might also like to view...
Use of the principle of comparative advantage involves
a. specialization only. b. exchange only. c. both specialization and exchange. d. money only.
If both the supply and demand for computer games increase, then the equilibrium price of the games: a. is indeterminate and the equilibrium quantity rises
b. is indeterminate and the equilibrium quantity falls. c. falls and the equilibrium quantity also falls. d. falls and the change in equilibrium quantity is indeterminate.
When a perfectly competitive industry is in long-run equilibrium, firms maximize profits, and entry forces the price down
a. until all loss making firms leave the industry. b. until each firm can earn acceptable level of economic profit. c. until price becomes tangent to the long run average cost curve. d. until the long average cost curve rises above the demand curve.
One reason Starbucks experienced a decline in sales in the late 2000s is because
A) the product they offered was becoming less differentiated from their competitors' products. B) the coffeehouse market transitioned from being monopolistically competitive to perfectly competitive. C) barriers to entry became more restrictive in the coffeehouse market. D) the number of competitors in the market declined dramatically.