Multiple Choice
Classical economists concluded that
A) Spending leakages exceed spending injections.
B) Interest rates adjust such that business investment and consumer saving may equal.
C) The economy might experience persistent macro instability.
D) Investment will decrease in response to increased savings.
Correct Answer:
Verified
Correct Answer:
Verified
Q7: Leakages include<br>A)Business saving.<br>B)Exports.<br>C)Government spending.<br>D)Inventories.
Q8: If the marginal propensity to consume is
Q9: Purchases of new plants and equipment plus
Q10: The value of the multiplier will be
Q11: Suppose lower expectations lead to a
Q13: A recessionary GDP gap is the<br>A)Horizontal distance
Q14: Keynes believed that abrupt changes in spending
Q15: Investment represents<br>A)A leakage from the circular flow,similar
Q16: Consumer spending<br>A)Is the smallest spending component.<br>B)Impacts the
Q17: Because the aggregate supply curve rises more