The larger the value of the marginal propensity to save (MPS)
A) the larger is the value of the marginal propensity to consumption (MPC).
B) the smaller is the value of the multiplier.
C) the larger is the value of the multiplier.
D) the larger is the value of autonomous consumption.
B
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Which of the following is a reason to think that government action may not be valuable to improve market outcomes with asymmetric information?
a. The private market can sometimes deal with information asymmetries using signaling and screening. b. The government rarely has more information than the private parties. c. Government actions have their own imperfections. d. All of the above are correct.
Production possibilities are the
A. Percentage of output produced by each worker. B. Various production methods that producers can employ. C. Various types of input that each manufacturing facility can choose to employ. D. Alternative combinations of output that can be produced using all available resources and technology.