Which of the following is the correct formula for the simple spending multiplier?
a. (1-MPC)/1
b. 1/(1-MPC)
c. MPS/(1-MPC)
d. MPC/(1-MPS)
b
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Willingness to pay
a. measures the value that a buyer places on a good. b. is the amount a seller actually receives for a good minus the minimum amount the seller is willing to accept. c. is the maximum amount a buyer is willing to pay minus the minimum amount a seller is willing to accept. d. is the amount a buyer is willing to pay for a good minus the amount the buyer actually pays for it.
Wages and salaries are examples of:
A. labor income. B. capital income. C. consumption. D. profits.
Market failure can occur even when the price signals are accurate.
Answer the following statement true (T) or false (F)
Which of these contract terms reduce transfer pricing problems?
A. Double markups and two-part pricing B. Two-part pricing and quotas C. Quotas and double markups D. Exclusive territories and two-part pricing