As the MPC rises, the multiplier
A. Will rise.
B. Will fall.
C. Will stay the same.
D. may rise, fall, or stay the same.
A. Will rise.
You might also like to view...
The marginal benefit is the
A) additional gain from one more unit of an activity. B) additional cost from one more unit of an activity. C) loss of the highest-valued alternative. D) additional gain from one more unit of an activity minus the additional cost from one more unit of the activity.
The minimum amount that investors must earn on the funds they invest in a firm, expressed as a percentage of the amount invested, is referred to as
A) the explicit costs of production. B) net income. C) net worth. D) a normal rate of return.
An expansion of the money supply, ceteris paribus, will
a. raise interest rates b. reduce investment demand c. contract aggregate demand d. lower prices e. increase investment in the economy
The lemons model predicts that:
A. if there are low-quality goods in the market, there will be fewer or no high-quality items. B. if there are high-quality goods in the market, there will be fewer or no low-quality items. C. the more low-quality goods there are in the market, the more high-quality goods there will be in the market. D. if buyers are pessimistic about the percentage of low-quality goods on the market, sellers of low-quality goods will be able to charge higher prices than if buyers had neutral beliefs.