The greater the marginal propensity to consume (MPC) in the economy, the greater the spending multiplier
a. True
b. False
Indicate whether the statement is true or false
True
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As a consumer spends a larger share of his income on a particular good, the price elasticity of demand for that good:
A) increases. B) decreases. C) initially decreases then increases. D) remains the same.
The basic economic problem is essentially one of deciding how to make the best use of:
A. unlimited resources to satisfy limited economic wants. B. limited resources to satisfy limited economic wants. C. unlimited resources to satisfy unlimited economic wants. D. limited resources to satisfy unlimited economic wants.
Identify the correct statement regarding business ethics.
A. Business ethics seeks to proscribe those behaviors that maximize an organization's profit. B. Business ethics seeks to proscribe those behaviors that maximize an employee's productivity. C. Business ethics and organizational architecture are interdependent. D. Business ethics and organizational architecture are independent of each other.
If there is an increase in the amount of currency held outside banks, then the
A) quantity of money and the monetary base will decrease. B) monetary base will decrease. C) quantity of money will increase. D) quantity of money will not change. E) quantity of money will decrease.