The multiplier effect refers to the series of
A) autonomous increases in consumption spending that result from an initial increase in induced expenditures.
B) induced increases in consumption spending that result from an initial increase in autonomous expenditures.
C) autonomous increases in investment spending that result from an initial increase in induced expenditures.
D) induced increases in investment spending that result from an initial increase in autonomous expenditures.
Answer: B
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Firms in Thailand that had borrowed dollars while the baht was pegged to the dollar faced interest payments that were ________ than they had planned while the Thai government continued trying to defend the peg, because the baht had been pegged ________ the equilibrium exchange rate for the baht.
A) higher; above B) higher; below C) lower; above D) lower; below
The sum of payments made to resource owners for the use of their resources is:
a. gross domestic product. b. net domestic product. c. national income. d. personal income. e. disposable personal income.