The concept of a government spending multiplier refers to
A) how much government spending increases whenever GDP increases
B) how much GDP increases whenever government spending increases
C) how much the money supply multiplies for a given increase in the monetary base
D) how much GDP increases for a reduction in the Fed Funds target rate
Answer: B) how much GDP increases whenever government spending increases
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The market demand curve facing a monopolist is more elastic than the market demand curve facing a monopolistic competitor
Indicate whether the statement is true or false
Keynesians prefer a disinflation policy of
A) cold turkey. B) stabilization. C) gradualism. D) aggregate demand management.
Applying for a loan in five-person groups is an example of:
A. family and friends lending. B. party of five lending. C. group responsibility. D. trade-off.
Diminishing marginal product exists when the production function becomes flatter as inputs increase
a. True b. False Indicate whether the statement is true or false