The tax multiplier equals 1 ? spending multiplier
a. True
b. False
Indicate whether the statement is true or false
True
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According to the Monetarists a decrease in investment spending initially __________ unemployment so that the price level __________. The resulting __________ in the real money supply __________ spending
A) increases; rises; increase; decreases B) increases; falls; increase; increases C) increases; falls; increase; decreases D) decreases; rises; increase; increases
Why did the attempts by some airlines to introduce uniform pricing for all air trips in 1980s and 1990s fail?
In a monopsonistic market
A) employment is lower but wages are higher than in a comparable competitive market. B) employment is higher but wages are lower than in a comparable competitive market. C) both employment and wages are higher than in a comparable competitive market. D) both employment and wages are lower than in a comparable competitive market.
The required reserve ratio is 20%. The money multiplier is
A. 2. B. 4. C. 5. D. 10.