If the marginal propensity to save (MPS) increases, the multiplier
A) decreases.
B) can either increase or decrease, depending on what happens to the marginal propensity to consume (MPC).
C) increases.
D) stays the same.
A
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A movement from a point inside the production possibilities frontier to a point on the production possibilities frontier represents
A) a tradeoff. B) a free lunch. C) full employment of labor but not capital. D) unemployment of labor but not capital. E) an infinite opportunity cost.
A year-long drought that destroys most wheat crops for the season would shift the:
A. short-run aggregate supply curve only. B. aggregate demand curve only. C. aggregate demand curve, and the short-run aggregate supply curve would shift in response. D. short-run aggregate supply curve and the long-run aggregate supply curve.
Consider a small open economy with desired national saving of Sd = 200 + 10,000rw and desired investment of Id = 1000 - 5000rw. If rw = 0.05, then a rise in government spending of 50 with no change in private saving causes net exports to become
A. -100. B. 50. C. 100. D. -50.
More confidence can be had from the results obtained from experiments using a population with ________ variation than from those with ________ variation.
A. high; low B. significant; insignificant C. implied; observed D. low; high