If the marginal propensity to save (MPS) is 0.10, the value of the spending multiplier is:
A. 1.
B. 9.
C. 10.
D. 90.
Answer: C
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In the following situation the tax system is Taxable income $5,000 $10,000 $20,000 Tax payments $500 $600 $1,600
a. progressive b. proportional c. regressive d. based on the benefits received e. there is insufficient information to answer the question
What is the foreign trade effect, and how does it explain the shape of the aggregate demand curve?
What will be an ideal response?
If lenders refuse to state the debt in terms of dollars, then dollars are NOT a
A. medium of exchange. B. unit of accounting. C. store of value. D. standard of deferred payment.
Answer the following questions true (T) or false (F)
1. If in the long run a firm makes zero economic profit, it should exit the industry. 2. A perfectly competitive firm in a constant-cost industry produces 1,000 units of a good at a total cost of $50,000. If the prevailing market price is $48, the number of firms and the industry's output will decrease in the long run. 3. Suppose there are economies of scale in the production of a specialized memory chip that is used in manufacturing microwaves. This suggests that the microwave industry is a decreasing-cost industry.