If the government finances increased spending strictly through higher taxes, this action
a. increases the multiplier effect.
b. has no impact on the multiplier effect.
c. decreases the multiplier to a value greater than one.
d. decreases the multiplier to one.
d. decreases the multiplier to one.
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The table above shows the total product schedule for Rick's Lawn Service, a yard care company. Increasing marginal returns
A) end when the fourth worker is hired. B) occur at all levels of employment. C) occur as long as output increases. D) end when the second worker is hired. E) never occur.
Explain the main difference between the pay-as-you-go system employed by Social Security and a private pension plan
What will be an ideal response?
A tradesman who purchases diamonds in a country where the price is low and sells them in another country where the price is high, can be said to be practicing:
a. arbitrage. b. speculation. c. derivatives trading. d. forecasting.
What is the marginal propensity to consume for the economy described in Scenario 10.1?
a. 0.45 b. 0.85 c. 0.65 d. 0.35 e. Cannot be determined