During the 2009-2010 debate on the stimulus package, democrats argued primarily for increased government spending. What effect would this have on the value of the multiplier?
a. It would decrease the value of the multiplier.
b. It would have no effect on the multiplier.
c. It would increase the value of the multiplier.
d. The effect is uncertain.
c
You might also like to view...
? According to Figure 5-13, if the price of good X falls, the optimal combination will move
A. from U1to a point on a higher indifference curve, such as U3. B. from U2to a point on a higher indifference curve, such as U3. C. from U1to a point on a higher indifference curve, such as U3. D. from U2to a point on a higher indifference curve, such as U1.
According to Okun's law, an increase in the unemployment rate will cause ________ in the level of employment and ________ in the level of output
A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease
The ease with which an asset can be
a. traded for another asset determines whether or not that asset is a unit of account. b. transported from one place to another determines whether or not that asset could serve as fiat money. c. converted into a store of value determines the liquidity of that asset. d. converted into the economy's medium of exchange determines the liquidity of that asset.
Poverty is most likely to decrease in which of the following situations:
A. The population decreases and GDP stays constant. B. Population and the economic growth rate both decrease. C. The size of the labor force decreases. D. Population grows more rapidly than GDP.