The ________ the marginal propensity to import, the ________ the multiplier
A) larger; more negative
B) larger; smaller
C) smaller; smaller
D) larger; larger
E) None of the above is correct, because the expenditure multiplier is not related to the marginal propensity to import.
B
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Which of the following is true?
A) The income per worker of a country is higher than its income per capita. B) The income per worker of a country increases when the amount of capital available in the country diminishes. C) The income per worker of a country is lower than its income per capita. D) The income per capita of a country increases when there is an increase in the number of workers.
The basic idea behind moral hazard is that ________
A) some economic transactions impose an additional cost on society B) some economic transactions give rise to an additional benefit to society C) people tend to take more risks if they do not have to bear the costs of their behavior D) people do not reveal their true preference for goods that are non-excludable in consumption
The U.S. government budget was
A) continuously in surplus from 1959 to the late 1990s. B) in surplus for most of the period from 1959-1970, but was in deficit for most of the period from 1970 to the late 1990s. C) in deficit for most of the period from 1959-1970, but was in surplus for most of the period from 1970 to the late 1990s. D) continuously in deficit from 1959 to the late 1990s.
The Great Depression of the 1930s
A. confirmed the value of a “hands off” policy for governments. B. was exacerbated by an expansionary monetary policy. C. was a worldwide event. D. continued throughout the 1940s without any interruption.