If that the marginal propensity to save (MPS) increased from 0.20 to 0.25, this would cause the multiplier effect to
A) increase. B) decrease.
C) stay the same. D) None of the above is correct.
B
Economics
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Based on the data in the table above, in the adjustment towards the long-run equilibrium
A) money wage rates will rise. B) the aggregate demand curve will shift leftward. C) the short-run aggregate supply curve will shift leftward. D) the short-run aggregate supply curve will shift rightward.
Economics
A business incurs the following costs per unit: Labor $125/unit; Materials $45/unit and rent $250,000/month. If the firm produces 1,000,000 units a month, the total fixed costs equal
a. $250,000 b. $50,000 c. $20,500 d. $30,000
Economics