The higher the marginal propensity to consume
A. the smaller the spending effect will be.
B. the bigger the incentive effect will be.
C. the smaller the incentive effect will be.
D. the bigger the multiplier effect will be.
Answer: D
You might also like to view...
The ________ specializes in making long-term loans for capital investment projects that do not have private financial support
A) International Monetary Fund B) Federal Reserve Bank C) World Bank D) European Central Bank
Refer to the accompanying figure. Assume demand remains unchanged at D1. If supply shifts from S1 to S2, then the equilibrium price will ________ and the equilibrium quantity will ________.
A. rise; rise B. rise; fall C. fall; fall D. fall; rise
Mutual funds have:
A. increased the risks associated with constructing a portfolio. B. reduced the costs associated with gathering information on stocks and bonds. C. increased the transactions costs associated with participating in financial markets. D. been created for very wealthy individuals with a lot of money to invest.
If a corporation operates two divisions that supply one another, and each division is located in a different country, then transfer prices are:
A. not allowed between most countries. B. set to allocate profit to the low tax rate country. C. set to allocate all costs to the low tax rate country. D. set to allocate profit to the high tax rate country.