Which of the following is true of the simple spending multiplier
a. It equals the ratio of the marginal propensity to consume to the marginal propensity to save.
b. It equals the difference between the marginal propensity to save and the marginal propensity to consume.
c. It is the reciprocal of the marginal propensity to save
d. It is the reciprocal of the marginal propensity to consume.
e. It is the sum of the marginal propensity to consume and the marginal propensity to save.
c
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Gordon's plots of the effectiveness lags of monetary policy over the periods 1961-1975, 1976-1990, and 1991-2007 show the effectiveness lags have become ________ and the overall response of GDP to monetary policy has ________
A) shorter, decreased B) shorter, increased C) longer, decreased D) longer, increased
All other factors held constant, if the price of game consoles rise, the demand for gaming titles will
a. shift to the left, because they are normally used together. b. remain constant. c. shift to the right, because they are normally used together. d. shift to the right, because they are substitutes.
The Bureau of Labor Statistics surveys consumers to determine a fixed basket of goods
a. True b. False Indicate whether the statement is true or false
The Social Security tax is
A. direct and progressive. B. direct and regressive. C. indirect and progressive. D. indirect and regressive.