If the MPC = 1, the spending multiplier is:
A. infinite.
B. zero.
C. 1.
D. 10.
Answer: A
You might also like to view...
Markets promote
A) competition and voluntary exchange. B) equity and competition. C) equity and equality. D) voluntary exchange and equality.
In common value auctions
a. Bidders do not know the value of the object being sold b. Each bidder makes the same estimate of the value of the good c. All bidders know the estimates of the others d. The true value of the item differs across bidders
Nominal GDP is equal to real GDP multiplied by the GDP deflator
Indicate whether the statement is true or false
Which of the following best represents the effects of a decrease in the price of belts, other things being equal?
a. An upward movement along the demand curve for belts. b. A downward movement along the demand curve for belts. c. A rightward shift in the demand curve for belts. d. A leftward shift in the demand curve for belts.