Other things equal, the multiplier effect associated with a change in government spending is:
A. the same as that associated with a change in taxes.
B. equal to that associated with a change in investment or consumption.
C. less than that associated with a change in investment.
D. greater than that associated with a change in investment.
B. equal to that associated with a change in investment or consumption.
You might also like to view...
Use the following table to answer the question below. Jane's Production Possibilities SchedulePounds of Green BeansPounds of Corn08020604040602080 0If Jane produces 40 pounds of green beans, she can produce ________ pounds of corn.
A. 40 B. 60 C. 0 D. 20
When a government subsidizes the sale of milk, cooperative surplus ________ and society gets ________
A) increases; richer B) increases; poorer C) decreases; richer D) decreases; poorer
A company facing the problem of moral hazard decided to lay off some workers during a recession, instead of lowering wages. What is the possible reason behind such a decision?
What will be an ideal response?
Firms that are participating in persistent dumping will sell less in the foreign market and charge a higher price than in the home market.
Answer the following statement true (T) or false (F)