The larger the mpc, the ________ the income-expenditure multiplier and the ________ the effect of a change in spending on short-run equilibrium output.
A. smaller; larger
B. larger; smaller
C. larger; larger
D. smaller; smaller
Answer: C
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The exchange rate between currencies depends on
A) the interest rate that can be earned on deposits of those currencies. B) the interest rate that can be earned on deposits of those currencies and the expected future exchange rate. C) the expected future exchange rate. D) national output. E) the interest rate that can be earned on deposits of those countries and the national output.
Fred the farmer purchased five new tractors at $20,000 each. Fred sold his old tractors to other farmers for $50,000. The net increase in GDP of these transactions was
A) $50,000. B) $100,000. C) $125,000. D) $150,000.
During the 1950s, Fed monetary policy targeted
A) the monetary base. B) the exchange rate. C) discount loans. D) interest rates.
The influence of technological change on market structure
a. invariably leads to domination by a few firms b. depends on whether it increases or decreases minimum efficient scale c. tends to increase concentration d. depends on whether it increases or decreases the product's value e. depends on foreign competition