True/false- the multiplier rises as the MPC rises
a. true
b. false
a. true
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Keynes hypothesized that the precautionary component of money demand was primarily determined by the level of
A) interest rates. B) velocity. C) income. D) stock market prices.
If the legal and regulatory environment fails to protect property rights and is often used to favor some at the expense of others, which of the following is most likely to be encouraged?
a. productive activities b. a high rate of investment c. rent-seeking and unproductive activities d. competitive markets
Suppose households decide to reduce savings because they want to enjoy more present time than future time. In this case, the loanable funds model predicts that
A) interest rate goes down, and quantity of borrowed funds increases. B) interest rate goes down, and quantity of borrowed funds decreases. C) interest rate goes up, and quantity of borrowed funds decreases. D) interest rate goes up, and quantity of borrowed funds increases.
The enacted Gramm-Rudman-Hollings Act would tend to have an
A. automatic stabilizing impact upon the economy. B. overall positive impact upon the economy during any stage of a business cycle. C. automatic destabilizing impact upon the economy. D. overall neutral impact upon the economy.