In the short run, changes in output can only be brought about by a change in the quantity of variable inputs
Indicate whether the statement is true or false
TRUE
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If real GDP decreases, there is
A) an upward movement along the demand for money curve and no shift of the curve. B) a leftward shift of the demand for money curve. C) no movement along the demand for money curve and the curve does not shift. D) a downward movement along the demand for money curve and no shift of the curve. E) a rightward shift of the demand for money curve.
Sadie has just eaten a donut and says it gave her a utility of 6. If she chooses to eat another donut:
A. we can assume she will get an increase in utility of at least 6 from the additional donut. B. we can assume she will get a decrease in utility from the additional donut. C. we can assume she will get an increase in utility of less than 6 from the additional donut. D. we can assume Sadie's total utility will fall because of diminishing marginal utility.
If a $50 increase in government spending causes a $250 increase in national income, the value of the income multiplier is
a. 5 b. 0.20 c. 0.80 d. 3 e. 10
Assume that the MPC is 0.85 and investment spending rises by $100 million. How much consumption spending will this generate in the second round of spending?
a. $15 million b. $85 million c. $100 million d. $118 million e. $185 million