The impact of the multiplier effect depends on the size of the initial change in expenditures.
Answer the following statement true (T) or false (F)
True
The impact of the multiplier effect depends on both the initial change in spending and the MPC value because the MPC value is used to calculate the multiplier. Multiplier=1/(1-MPC).
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Allocative efficiency best explains ________, and productive efficiency best explains ________
A) why something will be produced; what will be produced B) what will be produced; how something will be produced C) how something will be produced; when something will be produced D) when something will be produced; why something will be produced
Nathan does not vote because he feels as he does not have a real choice. To him, "all politicians are exactly the same." Which of the following statements might lend some credence to Nathan's observation?
a. In a representative democracy, politicians must appeal to the median voter if they hope to be successful. b. In a representative democracy, politicians are uniformly graduates of Ivy League schools. c. In a representative democracy, politicians exclusively come from wealthy families. d. In most representative democracies, individuals similar to Nathan do not vote and thus are not represented in the political process.
Moe divides his time between studying Physics and studying Economics. His production possibilities curve for his final grade in each class is shown in the accompanying figure.
Moe needs to earn at least an 80 in both economics and physics to keep his scholarship. Given his current PPC, an 80 in both classes is ________.
A. unattainable B. inefficient C. efficient D. attainable
Buying and selling U.S. Treasury Securities for the Fed's own portfolio is called:
A. discount buying. B. open market operations. C. managing the float. D. reserve adjustment.