A point inside a production possibilities frontier
A) could indicate that some resources are unemployed.
B) is unattainable.
C) is more efficient than points on the production possibilities frontier.
D) implies that too much capital and not enough labor are being used.
A
Economics
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Assume a closed economy, that taxes are fixed, and the marginal propensity to consume is equal to 0.8. What is the government spending multiplier?
A) 10 B) 5 C) 4 D) 3
Economics
An upward shift of the consumption function might be caused by:
a. an increase in disposable income. b. a decrease in disposable income. c. a decrease in the price level. d. a decrease in household wealth. e. an increase in the interest rate.
Economics