If the MPC is .9, the multiplier is
A. .9.
B. 1.
C. 9.
D. 10.
D. 10.
You might also like to view...
The Fed is a central bank and as such
A) does business only with the federal government. B) provides banking services to banks but not individuals. C) provides banking services to individuals and firms. D) does business with international organizations such as the United Nations. E) is where the Federal Government turns when it needs to borrow.
What are the pros and cons of using cold turkey disinflation compared to a policy of gradualism?
What will be an ideal response?
Government economic policies are designed to have the biggest impact on _____
a. cyclical unemployment b. frictional unemployment c. structural unemployment d. seasonal unemployment
Consumption:
A. is negatively related to the national price level. B. is a major component of aggregate demand. C. measures people's expenditures on real goods and services. D. All of these are true.