As the marginal propensity to consume (MPC) increases, the spending multiplier
a. increases.
b. decreases.
c. remains constant.
d. becomes indefinable.
A
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Refer to Figure 18.3. After trade and specialization begin, the maximum amount of pogo sticks that Livonia can consume is
A) 120. B) 100. C) 80. D) 40.
A country is likely to have investment freedom if the government allows free flow of foreign capital into the domestic economy
a. True b. False Indicate whether the statement is true or false
The market structure in which each firm has a monopoly over the product it makes, but many other firms make similar products that compete for the same customers is called
The output level produced by a profit-maximizing monopolist:
a. exceeds the level that would maximize social welfare. b. is allocatively efficient. c. is less than the level that would maximize social welfare. d. always results in economic profits in the long run.