The larger the marginal propensity to consume, the larger the multiplier effect
a. True
b. False
Indicate whether the statement is true or false
True
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The marginal social benefit is the sum of the benefit enjoyed by the consumer of an additional unit of a good or service plus the marginal benefit enjoyed by others
Indicate whether the statement is true or false
The three components of personal consumption expenditures are
a. durable goods, nondurable goods, and services b. durable goods, food, and housing c. durable goods, nondurable goods, and housing d. durable goods, services, and food e. durable goods, services, and transportation
Which of the following best describes marginal cost?
a. The change in total cost when one additional unit of output is produced. b. Total cost divided by the quantity of output produced. c. Total variable cost divided by the quantity of output produced. d. Total fixed cost divided by the quantity of output produced. e. Costs that do not vary as output varies, and that must be paid even if output is zero.
Which of the following will decrease aggregate demand?
a. An increase in government expenditure b. An increase in consumption c. An increase in investment spending d. An increase in imports