If government spending increases, which causes producers to hire more workers, and as a result households have more income to spend, which causes aggregate demand to increase even more, this is known as the:
A. Magnifying process.
B. Multiplier process.
C. Saving effect.
D. Fiscal effect.
B. Multiplier process.
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What are the determinants of a country's comparative advantage?
What will be an ideal response?
Increases in the fraction of national debt held by foreigners _____ the burden of debt service on future generations _____
a. decrease; because it is easier for the borrowing nation to default on the debt b. decrease; but may make the country more vulnerable to foreign intervention c. decrease; because debt servicing accomplished by increases in the money supply is not as inflationary as it would be if all debt were held domestically d. increase; because taxes to repay the debt are collected within the country but more interest payments on the debt are sent outside e. increase; because foreign bondholding pushes up interest rates at the date of issue, increasing crowding out
Since a union represents individuals rather than firms, it cannot be considered a monopoly
a. True b. False Indicate whether the statement is true or false
Expansion of factories, investment in new computers and/or equipment are processes of capital formation.
Answer the following statement true (T) or false (F)