Suppose we are working with the simplest possible Keynesian-cross multiplier, but with the permanent-income hypothesis figured in. If k = 0.88,
and j = 0.25, the multiplier of a $1 change in government spending goes from ________ in the short run to ________ in the long run.
A) 8.33, 1.28
B) 1.28, 8.33
C) 8.33, 4.00
D) 1.13, 4.00
E) 4.54, 8.33
B
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The excess of total credits over total debits in the current and private capital accounts is called the
A) BOP deficit. B) BOP surplus. C) official settlements account surplus. D) official settlements account deficit.
A utility-maximizing consumer would never purchase a good if the:
a. MU/P is positive. b. marginal utility is positive. c. marginal utility is negative. d. none of these is correct.
The _____ aggregate supply curve assumed by classical economists means that the equilibrium level of _____ is determined only by the aggregate supply curve
a. vertical; output b. horizontal; price c. upward-sloping; price d. horizontal; output e. downward-sloping; price
What is a cartel? What are the advantages of cheating in a cartel?