If the marginal propensity to consume is 0.80, the value of the spending multiplier will be 5
a. True
b. False
Indicate whether the statement is true or false
True
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The bond supply curve
A) shows the quantity of bonds lenders are willing to supply as bond prices change. B) shows the quantity of bonds lenders are willing to supply as interest rates change. C) shows the quantity of bonds borrowers are willing to supply as bond prices change. D) is represented by a downward-sloping line when the price of bonds is on the vertical axis and the quantity of bonds supplied is on the vertical axis.
When Dr. Katy Stack treats a military veteran at a veterans' administration hospital, the money she receives is part of the _________ category(ies) of government spending
a. educational b. veterans' benefits c. public assistance d. international aid e. income support, Social Security, and welfare
Demand-pull inflation may be caused by:
a) An increase in costs b) A reduction in interest rates c) A reduction in government spending d) An outward shift in aggregate supply
Which of the following would most likely occur if the federal government decreased its spending and reduced the size of the budget deficit during a period of full employment?
A. The rate of inflation would decline. B. The rate of inflation would rise. C. The government spending multiplier would double. D. Interest rates would fall.