The multiplier means that an increase in investment results in ________ aggregate expenditure that is ________ the increase in investment
A) increased; the same size as
B) increased; smaller than
C) decreased; larger than
D) decreased; smaller than
E) increased; larger than
E
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All twelve Federal Reserve Bank presidents
A) attend Federal Open Market Committee Meetings. B) vote on decisions regarding the discount rate. C) vote on decisions regarding the prime rate. D) vote on decisions regarding bank reserve requirements.
All of the following would cause the production possibilities curve to shift outward EXCEPT
A) an improvement in technology. B) an increase in the amount of labor available. C) a decline in the unemployment rate. D) an increase in the level of capital stock.
If price exceeds marginal cost, we say that a firm receives
a. Extraction surplus b. User costs c. Consumer surplus d. Royalty payments e. Resource rents
Banks have historically used the discount window:
A. often, until the financial crisis of 2008. B. sparingly during recessions, and often during booms. C. sparingly, until the financial crisis of 2008. D. often during recessions, and sparingly during booms.