The reason the multiplier is greater than 1 is that
A. income is re-spent.
B. workers are capable of increasing their production when they have to.
C. the marginal propensity to save is 1.
D. None of the choices are correct.
A. income is re-spent.
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During the antebellum period, U.S. consumers increased their demand for mass-produced, standardized and simple goods
Indicate whether the statement is true or false
Families go through good times and bad times financially. It's now bad times for the Althoff family. The family buys more macaroni because its principal income earner has been laid off work for several months. This means that the Althoffs'
a. demand curve for macaroni is elastic b. income elasticity for macaroni is negative c. demand for macaroni reflects Engel's law d. price elasticity of demand for macaroni is greater than one e. price elasticity of demand for macaroni is less than one
The type of currency in circulation in the modern U.S. economy is almost entirely
A. commodity money. B. metallic money. C. fiat money. D. silver certificates.
The providers of information products typically
A. have high marginal costs. B. have high fixed costs. C. have zero fixed costs. D. have low fixed costs.