If 100 percent of any change in income is spent, the multiplier will be:
A. equal to the MPC.
B. 1.
C. zero.
D. infinitely large.
D. infinitely large.
You might also like to view...
The factor market can best be described as where
A) households buy goods and services. B) firms buy goods and services. C) firms buy the services of labor, land and capital. D) governments sell goods and services.
Which of the following is part of the economic way of thinking? a. When an option becomes less beneficial, individuals will become more likely to choose it. b. Costs are incurred whenever scarce resources are used to produce goods or services
c. The value of a good is determined by its cost of production. d. Both a. and b. are part of the economic way of thinking.
Which statement best illustrates complementary goods?
A) The price of tennis rackets declines so your economics instructor decides to take tennis lessons and purchases several cans of new tennis balls. B) The price of Apple Macintosh computers declines so your economics instructor sells his or her IBM personal computer and buys a Macintosh. C) After receiving a promotion and a hefty year-end bonus from the college, your economics instructor decides to stop buying denim jeans and switches to clothing befitting his or her loftier position on the faculty. D) Fearing that the price of pipe tobacco will rise next year, your economics professor goes to his local tobacconist and purchases an ample supply to last for several years.
Large denomination time deposits are included in
A. M2 only. B. M3 only. C. M2 and M3. D. M1 and M2. E. M1, M2, and M3.