If consumption is greater than disposable income, it follows that
A) interest rates are rising.
B) the budget deficit is shrinking.
C) saving is negative.
D) the multiplier is inoperative.
E) none of the above
C
Economics
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If the multiplier is 10, the marginal propensity to consume must be 0.1
Indicate whether the statement is true or false
Economics
The Keynesian AS curve differs from the classical AS curve in that:
a. the classical AS curve assumes flexible nominal wages. b. the Keynesian AS curve is upward sloping. c. the Keynesian AS curve focuses on short-run behavior. d. b and c. e. all of the above.
Economics