Multiple Choice
The multiplier is the
A) impact that investment has on the physical capital.
B) concept that the interest rate will induce consumption and investment spending.
C) concept that increases in spending will cause a larger increase in equilibrium GDP.
D) impact that expansionary fiscal policy has on recessions.
Correct Answer:
Verified
Correct Answer:
Verified
Q39: Recessionary gaps are most likely to be
Q40: Real wealth changes with<br>A)disposable income.<br>B)consumption.<br>C)the price level.<br>D)GDP.
Q41: In the simplified circular flow diagram, leakage
Q42: Which of the following shows the relationship
Q43: Assume that the MPC is 0.85 and
Q45: The equilibrium level of GDP is always
Q46: If businesses spend an additional $150 billion
Q47: An increase in investment spending will be
Q48: Suppose the economy is suffering in a
Q49: Realistically, the impact of the multiplier is