In the figure above, if the MPC increased, the aggregate expenditure lines would ________ and the multiplier would ________ in value
A) not change; rise
B) become steeper; fall
C) not change; fall
D) become steeper; rise
E) become less steep; rise
D
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Sofia, a political science student, thinks that the government should intervene to revive declining industries like video rentals and print newspapers
The government, she reasons, can resolve the coordination problem of getting the agents in these markets to trade. Do you agree with her? Explain your answer.
Cost-benefit analysis is the public sector counterpart to ____ used in private, profit-oriented firms
a. ratio analysis b. break-even analysis c. capital budgeting techniques d. economic forecasting e. none of the above
Monetary policy refers to the actions the Federal Reserve takes to manage
A) the money supply and income tax rates to pursue its economic objectives. B) the money supply and interest rates to pursue its economic objectives. C) income tax rates and interest rates to pursue its economic objectives. D) government spending and income tax rates to pursue its economic objectives.
Natural monopolies in the United States are generally regulated by
A) the Federal Trade Commission. B) the Department of Justice. C) local or state regulatory commissions. D) the Department of Commerce.