The larger the marginal propensity to consume:
a. the larger will be consumers' savings.
b. the more pronounced will be the impact of an expansionary fiscal policy.
c. the smaller will be consumer's consumption.
d. the smaller will be the spending multiplier.
b
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If the pound-dollar exchange rate changes from £0.60 per dollar to £0.65 per dollar, then the pound has ________ against the dollar and the dollar has ________ against the pound
A) depreciated; depreciated B) appreciated; depreciated C) appreciated; appreciated D) depreciated; appreciated
When there is no comparative advantage between countries
A. the benefits resulting from trade are increased. B. there are no gains from specialization and trade. C. there must be an absolute advantage. D. each should try and specialize in the production of a particular commodity.
In a game of bargaining, the player who is willing to:
A. make the first move has more bargaining power and so receives a better payoff. B. hold out longer has more bargaining power and so receives a better payoff. C. be cooperative has more bargaining power and so receives a worse payoff. D. hold out longer has more bargaining power and so receives a worse payoff.
Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher