The simple spending multiplier is the inverse of the marginal propensity to consume
a. True
b. False
Indicate whether the statement is true or false
False
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A central bank can control the real interest rate precisely, so long as ________ remains constant
A) the nominal interest rate B) monetary policy C) expected inflation D) all of the above E) none of the above
The market structure that consists of many firms, each selling a slightly differentiated product, is called: a. perfect competition
b. a monopoly. c. monopolistic competition. d. an oligopoly.
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
According to the graph shown, if this economy were open to free trade, it would:
A. export this good because the world price is greater than the domestic price. B. import this good because the world price is greater than the domestic price. C. import this good because the domestic price is greater than the world price. D. export this good because the domestic price is greater than the world price.
Because of its ___________ effects, inflation increases social and economic tensions.
Fill in the blank(s) with the appropriate word(s).