As the marginal propensity to consume (MPC) decreases, the spending multiplier:
A. increases.
B. decreases.
C. remains constant.
D. becomes undefinable.
Answer: B
You might also like to view...
As per capita GDP has risen in the United States and other countries,
a. life expectancy and leisure time have also risen and infant mortality and illiteracy have gone down.. b. life expectancy has risen but leisure time has gone down, while infant mortality and illiteracy have remained the same. c. various quality of life variables have been unaffected. d. most quality of life variables such as life expectancy and expenditures on leisure time activities have fallen.
One of the primary reasons that costly technology is being introduced into the health care system is:
a. third-party insurance finances most of the cost of care. b. high cost is synonymous with better outcomes. c. better access to technology, especially diagnostic imaging, results in lower spending. d. research scientists have successfully mapped the human genome.
If Alex uses $800 from her checking account to pay her credit card balance, her wealth:
A. increases by $800. B. does not change. C. decreases by $800. D. increases by $1,600.
Which of the following skills would the study of economics help promote?
A. problem solving B. memorization C. critical thinking D. problem solving and critical thinking only