If the marginal propensity to save is 0.3 and the marginal propensity to import is 0.2, then value of the simple spending multiplier is
A. 0.5.
B. 0.1.
C. 1.5.
D. 2.0.
Answer: D
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Which of the following is NOT a likely market solution to the lemons problem?
A) average cost pricing B) product warranty C) industry standard D) product certification
The 1992 plan of the European Union calls for
a. the complete mobility of economic resources across EU borders. b. establishing the British pound as the common currency. c. a central banking system in Zurich. d. a federal tax system similar to that of the United States.
Accurately incorporating the present consequences of an action, but ignoring or underestimating the future consequences, is a description of present bias.
Answer the following statement true (T) or false (F)
Assuming that oligopolists do not have the opportunity to collude, once they have reached the Nash equilibrium, it
a. is always in their best interest to supply more to the market. b. is always in their best interest to supply less to the market. c. is always in their best interest to leave their quantities supplied unchanged. d. may be in their best interest to do any of the above, depending on market conditions.