A multiplier of 1 means the MPS is equal to 1.
Answer the following statement true (T) or false (F)
True
You might also like to view...
Mergers between companies that previously existed in a supplier-buyer relationship are called
A) conglomerate mergers. B) diagonal mergers. C) horizontal mergers. D) vertical mergers.
What is a business cycle and what are its phases and turning points?
What will be an ideal response?
If the demand for corn is elastic, then:
a. there are not many substitutes for the consumption of corn. b. the price elasticity of demand for corn is less than -1. c. a decrease in price will reduce total revenue for corn producers. d. an increase in price will increase total revenue for corn producers. e. consumers will continue buying the same quantity even if price increases.
The chief difference between the M1 and M2 measures of the money supply is:
A. M2 includes assets with a lower liquidity than those in M1. B. M1 is a broader, more comprehensive measure. C. the supply of M1 exceeds the supply of M2. D. M2 excludes currency.