The higher the marginal propensity to consume, the
A) smaller will be the simple multiplier.
B) more insulated will be consumption spending from exogenous shocks to the economy.
C) less effective will be any given monetary or fiscal policy.
D) more unstable the economy will be.
D
Economics
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With a contractionary monetary policy, as the output gap increases, the response of the central bank will tend to cause net capital outflows to ________ and cause the nominal exchange rate to ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Economics
The ordered pair that represents the origin on a graph is
a. (1, 1). b. (0, 0). c. (-1, -1). d. ( ).
Economics