The larger the MPC, the greater the multiplier effect.
a. true
b. false
a. true
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A market system is not considered an effective way of controlling self-interest.
Answer the following statement true (T) or false (F)
Suppose that the equilibrium nominal interest rate is 5 percent and the equilibrium quantity of money is $1 trillion. At any interest rate below 5 percent,
A) the supply of money will decrease. B) there will be a surplus of money and bond prices will increase. C) the interest rate will fall and bond prices will fall. D) there will be a surplus of money and bond prices will fall. E) the interest rate will rise and bond prices will fall.
Although he is very poor, Al plays the million-dollar lottery everyday because he is certain that one day he will win. Al makes this calculation based upon
A) the frequency of past outcomes. B) subjective probability. C) knowledge of all possible outcomes. D) tossing a coin.
The change in total output when one more unit of a resource is employed is called
a. total revenue b. marginal revenue product c. marginal physical product d. quantity supplied e. wage rate