The multiplier is:
A. 1/MPC.
B. 1/(1 + MPC).
C. 1/MPS.
D. 1/(1 - MPS).
C. 1/MPS.
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Both the demand for and supply of cars changes in France. You observe that the quantity of cars does not change but the price rises. Thus, which of the following occurred?
A) Demand increased and supply decreased by an equal amount. B) Demand and supply increased by an equal amount. C) Demand and supply decreased by an equal amount. D) Demand increased by a larger magnitude than supply decreased. E) Demand decreased and supply increased by an equal amount.
Large denomination time deposits are included in:
A) M1. B) M2. C) M3. D) L.
Unlike a money supply target, an inflation rate target
a. will always stabilize income better. b. will stabilize income better if velocity is unstable. c. still allows the Fed unlimited discretion. d. eliminates the need for a central bank.
How is total revenue calculated?
a. multiplying price by change in demand b. multiplying price by quantity sold c. multiplying change in price by change in quantity demanded d. multiplying change in price by quantity sold