The simple multiplier 1/MPS:
A. Understates the actual multiplier because it includes leakages in domestic spending from
the purchase of imports or the paying of taxes
B. Understates the actual multiplier because it excludes leakages in domestic spending from
the purchase of imports or the paying of taxes
C. Overstates the actual multiplier because it includes leakages in domestic spending from
the purchase of imports or the paying of taxes
D. Overstates the actual multiplier because it excludes leakages in domestic spending from the purchase of imports or the paying of taxes
D. Overstates the actual multiplier because it excludes leakages in domestic spending from the purchase of imports or the paying of taxes
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What happens if price falls below the market clearing price?
A. Supply shifts in. B. Demand shifts out. C. Quantity demanded decreases, quantity supplied increases, and a surplus results. D. Quantity demanded increases, quantity supplied decreases, and a shortage results.
The patent system is intended to: a. prevent natural monopolies from unfairly exploiting their cost advantages. b. reward innovators by granting them temporary monopolies
c. spread information among firms as quickly and economically as possible. d. give small businesses a competitive edge over larger businesses.