A rise in MPC makes the total expenditures (TE) curve __________ and __________ the multiplier
A) steeper; raises
B) steeper; lowers
C) flatter; raises
D) flatter; lowers
A
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If the cross price elasticity of demand between Los Angeles Lakers professional basketball tickets and Los Angeles Dodgers professional baseball tickets is positive, then the two goods are
A) substitutes. B) unrelated. C) complements. D) not related.
The global financial panic in September 2008 that led to a sharp fall in business investment spending and consumer spending can be viewed as: a. a sharp decrease in aggregate supply
b. a sharp decrease in aggregate demand. c. a sharp decrease in both aggregate supply and aggregate demand. d. a modest increase in aggregate supply. e. a modest increase in both aggregate demand and aggregate supply.
How is money destroyed in the banking system?
If the firms in a monopolistically competitive market are earning short-run economic profits, then
a. each existing firm will increase output in the long run as its marginal revenue curve shifts rightward b. each firm will experience an increase in the demand for its output in the long run c. each firm's profit will drop to normal in the long run as its demand curve shifts leftward due to entry of new firms d. barriers to entry will enable them to earn economic profits in the long run e. decreased demand for a key input will reduce that input's price in the long run and lower each firm's average total cost curve