Identify the “oversimplified multiplier formula.”
A. Multiplier = 1 divided by (1 ? change in GDP)
B. Multiplier = 1 divided by (1 ? marginal propensity to consume)
C. Multiplier = 1 divided by (1 ? marginal propensity to save)
D. Multiplier = 1 divided by (1 ? rate of inflation)
Answer: B
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The debt-to-GDP ratio decreases when the primary deficit ________ or when seigniorage ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
Considering the information in the table shown, if Jack decides to consume bundle D, we can conclude that Jack:
This table shows the different combinations of goods that Jack can consume, given that his income to spend on these two items is $10.
A. still has money left to spend.
B. is not maximizing his utility.
C. could consume more of both goods.
D. All of these are true.
The structural deficit is extremely sensitive to the performance of the economy
a. True b. False Indicate whether the statement is true or false
The introduction of a new cost-effective production technique is likely to __
Fill in the blank(s) with the appropriate word(s).