The larger the marginal propensity to consume,
a. the larger the multiplier.
b. the larger the marginal propensity to save.
c. the higher the income level of the economy.
d. the smaller the change in income derived from a given change in government spending.
A
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Using the definition of unemployment, which of the following individuals would be unemployed?
A) A full-time student quits school, enters the labor market for the first time, and searches for employment. B) Because of the increased level of automobile imports, an employee of General Motors is laid off but expects to be called back to work soon. C) Because of a reduction in the military budget, your next door neighbor loses her job in a plant where nuclear warheads are made and must look for a new job. D) All of these individuals are unemployed.
"A firm in monopolistic competition maximizes its profit by producing where its price is equal to its marginal cost." Is the previous statement correct or incorrect?
What will be an ideal response?
A perfectly competitive producer faces a demand curve for its own product that is
A) downward sloping. B) upward sloping. C) horizontal. D) vertical.
The implicit cost of ownership:
A. is a cognitive bias if it goes ignored. B. leads people to value things more once they possess them. C. is a nonmonetary opportunity cost that is often overlooked. D. All of these are true.