Multiple Choice
Assume a multiplier effect,some crowding out and no accelerator effect An increase in government expenditures changes aggregate demand more
A) the smaller the MPC and the farther an increase in income shifts money demand.
B) the smaller the MPC and the less an increase in income shifts money demand.
C) the larger the MPC and the farther an increase in income shifts money demand.
D) the larger the MPC and the less an increase in income shifts money demand.
Correct Answer:

Verified
Correct Answer:
Verified
Q4: People are likely to want to hold
Q16: The Employment Act of 1946 states that<br>A)the
Q33: The price of imported oil rises.If the
Q108: Permanent tax cuts have a larger impact
Q151: Which of the following policies would someone
Q156: For the following questions, consult the diagram
Q157: People will want to hold less money
Q181: When the Fed sells government bonds,the reserves
Q279: If the MPC = 3/5,then the government
Q322: In the short run,an increase in government