The spending multiplier is defined as:
a. the ratio of the change in equilibrium output to the initial change in spending.
b. the change in initial spending divided by the change in personal income.
c. 1 / (marginal propensity to consume).
d. 1 / (1 ? marginal propensity to save).
a
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Due to low interest rates, increased banking regulations, and technological change, JPMorgan Chase announced it would ________ the number of persons it employed in 2015 and this would ________ the total number of persons unemployed in the economy
A) decrease; increase B) increase; decrease C) decrease; decrease D) increase; increase
In October 2012, the largest liability of the Fed was
A) currency in circulation. B) reserves. C) discount loans to banks. D) vault cash.
Many theme parks charge an entrance fee and a per-ride fee equal to zero. This is an example of
A) bundling. B) a two-tier tariff. C) multimarket price discrimination. D) perfect price discrimination.
When comparing market and public sector decision making, which statement is NOT true?
A) Self-interest is the motivating force in each decision making arena. B) In both decision making sectors, majority rule is how things are done. C) In both decision making sectors, there are scarcity constraints. D) Collective (political) outcomes and economic outcomes may differ.