The MPC shows the relationship between:
a. interest rates and investment.
b. disposable income and consumer spending.
c. saving and investing.
d. inflation and unemployment
Ans: b. disposable income and consumer spending.
Economics
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What factors can cause the natural rate of unemployment to change?
What will be an ideal response?
Economics
If the crowding-out effect is strong, how will the potency of discretionary fiscal policy be affected?
a. It will make fiscal policy more potent. b. It will make fiscal policy less potent. c. The potency of fiscal policy will be unaffected. d. The potency of expansionary fiscal policy will be reduced, but that of restrictive fiscal policy will be enhanced.
Economics