Multiple Choice
Consider a simple macro model with a constant price level and demand-determined output.If the marginal propensity to spend in such a model is one,the simple multiplier is
A) zero.
B) a positive number between zero and one.
C) one.
D) a positive number greater than one but less than infinity.
E) infinitely large.
Correct Answer:
Verified
Correct Answer:
Verified
Q21: Consider a simple macro model with a
Q58: Consider a consumption function that is upward
Q67: Consider the following information for an economy
Q68: Desired investment expenditure will generally fall as
Q71: Suppose aggregate output is demand-determined.If the business
Q79: The marginal propensity to save refers to
Q85: Consider a simple macro model with demand-determined
Q94: The simple multiplier applies to short-run situations
Q112: The consumption function is based on the
Q114: Consider the simplest macro model with demand-determined