Which of the following affects the magnitude of the multiplier?
i. marginal propensity to consume
ii. marginal propensity to invest
iii. marginal tax rate
A) i only B) ii only C) iii only D) i and iii E) i, ii, and iii
D
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
Refer to the scenario above. Real GDP of the country has grown by ________
A) 0.2% B) 10% C) 5% D) 20%
To maximize expected profit, a perfectly competitive firm with a random marginal cost and random demand should produce at the level that sets ________ equal to ________.
A) expected marginal revenue; marginal cost B) marginal revenue; expected marginal cost C) expected marginal revenue; expected marginal cost D) marginal revenue; marginal cost
In traditional economic models, homo economicus is assumed to be all of the following EXCEPT:
A. cognitively sophisticated. B. altruistic. C. highly disciplined. D. well-informed.