Assuming no government or foreign sector, [1 / MPS] represents
A. the multiplier.
B. the consumption function.
C. autonomous income.
D. negative saving.
Answer: A
You might also like to view...
A recent accounting graduate from a major business school is searching for a place to begin his career as an accountant. This individual is
A) structurally unemployed. B) seasonally unemployed. C) cyclically unemployed. D) frictionally unemployed.
When Pam from Pennsylvania buys stock in Ford Motor Co., she is contributing to:
A. domestic portfolio investment in the U.S. B. capital outflow for the U.S. C. capital inflow for the U.S. D. foreign direct investment for the U.S.
Producers tend to be better represented in lobbying efforts and other elements of the political process than consumers because
a. producers are generally more intelligent and, therefore, better informed. b. producers are generally better organized than consumers. c. producers are better educated than consumers. d. the number of producers affected by the outcome of a particular political issue is usually greater than the number of consumers affected.
The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.