If the spending multiplier is 8, then the marginal propensity to consume must be 7/8
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
The primary difference between private goods and public goods is that
A. private goods are consumed by private individuals whereas public goods are not consumed by private individuals. B. private goods often yield externalities but public goods do not. C. property rights can be assigned to public goods but not to private goods. D. public goods are nonrivalrous in consumption whereas private goods are rivalrous in consumption.
Asymmetric information exists when one participant in a market transaction has more information than the other participant
a. True b. False
Growth accounting is seen a useful way to estimate this inputs contribution to growth:
A. labor. B. physical capital. C. land. D. technology.
The text points out that there is an inverse relationship between the fiscal cost of a bank crisis and real GDP growth. What are some of the reasons that can explain this inverse relationship?
What will be an ideal response?