If the multiplier is 10, the marginal propensity to consume must be 0.1
Indicate whether the statement is true or false
FALSE
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Which of the following unemployment rates can be negative?
A) the official unemployment rate reported by the Bureau of Labor Statistics B) the natural unemployment rate C) the cyclical unemployment rate D) the seasonal unemployment rate
If firms in a competitive market are not? identical, then an increase in cost for all firms will
A. shift marginal cost to the right. B. push the most efficient firms out of the market. C. push the most inefficient firms out of the market. D. Need more information.
When the reserve requirement changes, which of the following will change for an individual bank?
A. Transactions account balances and lending capacity. B. Total reserves, required reserves, and excess reserves. C. Required reserves, excess reserves, and lending capacity. D. Transactions account balances, total reserves, and excess reserves.
If a firm decides to produce no output in the short run, its costs will be:
A. its fixed plus its variable costs. B. its fixed costs. C. its marginal costs. D. zero.