The cumulative decrease in total spending resulting from an initial decrease in expenditures is equal to the initial decrease multiplied by 1 ÷ MPC.
Answer the following statement true (T) or false (F)
False
The cumulative decrease in total spending resulting from an initial decrease in expenditures is equal to the initial decrease multiplied by 1 ÷ (1 - MPC).
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Assume the total real output of a developing country increases from $8 billion to $8.2 billion while its population expands from 14 to 15 million people from one year to the next. Over the year, real GDP per capita has ________.
A. decreased by $25 per person B. increased by $533 per person C. decreased by $533 per person D. increased by $25 per person
Harmonization of standards refers to
A) the elimination of tariffs and quotas by trading partners. B) common product safety, environment, labor, and fair competition standards agreed upon by trading partners. C) the acceptance or keeping of a trading partner's standards as valid and sufficient by another trading partner. D) separate standards held by different trading partners which other partners refuse to recognize. E) All of the above.
When quantity supplied is greater than quantity demanded, the price will _____.
Fill in the blank(s) with the appropriate word(s).
Other things constant, an increase in interest rates will
A) increase your incentive to borrow. B) increase your incentive to save. C) increase your incentive to buy a new car on credit. D) reduce your incentive to save.