What is the expenditure multiplier that underlies the changes in this graph?
a. 0.25
b. 0.40
c. 1.33
d. 4.00
d. 4.00
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An increase in the inflation rate increases employment only if the increase in inflation is unexpected
Indicate whether the statement is true or false
The quantity demanded of good X falls by 20% and, in response, your income goes down by 10% and, the income elasticity of demand would be:
a. 2 b. 4 c. .5 d. .20
Which of the following best describes the vicious cycle of poverty? a. Rich countries eventually decline because its citizens become lazy
b. Poor countries eventually improve through investment in education, infrastructure, and capital accumulation. c. Rich countries stay rich through continued high levels of investment in education, infrastructure, and capital accumulation. d. Poor countries stay poor because they cannot afford to invest in education, infrastructure, and capital accumulation.
If Sam wants to increase her total revenue from her sales of flowers and she knows that the demand for flowers is price elastic, she should
A) lower her price to increase the demand and shift the demand curve rightward. B) raise her price because she knows that the quantity demanded will also increase. C) raise her price because she knows that the percentage decrease in the quantity demanded will be smaller than the percentage increase in price. D) lower her price because she knows that the percentage increase in the quantity demanded will be greater than the percentage decrease in price.