The higher the marginal propensity to consume, the
a. smaller the size of the multiplier.
b. larger the size of the multiplier.
c. larger the propensity to save.
d. larger the velocity.
b. larger the size of the multiplier.
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The European Central Bank (ECB) pursues a hybrid monetary policy strategy that has elements in common with the -targeting strategy previously used by the Bundesbank but also includes some elements of targeting
A) monetary; inflation B) inflation; monetary C) monetary; exchange rate D) monetary; nominal GDP
The Irish production possibilities curve shifts to the left when there is
a. an increase in the Irish labor supply b. innovation in the production of Irish goods c. a civil war that destroys much of Ireland's resource base d. unemployment among Irish workers e. a choice among the Irish of more capital goods last period
Suppose the United Auto Workers union obtains a substantial wage increase for auto workers. How will this affect the market for automobiles?
Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation. B. low economic growth and high inflation. C. high economic growth and low inflation. D. low economic growth and low inflation.