Monetarist economists might conclude that the accelerator hypothesis supports their position via fiscal policy since
A) the gap between the desired capital stock and the existing capital stocks is closed slowly.
B) a change in expected sales will not increase output.
C) V? will be smaller than expected.
D) All of the above are correct.
A
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An increase in investment can lead to a greater increase in aggregate demand if the value of the spending multiplier is: a. greater than 1
b. less than 1 but more than zero. c. negative. d. exactly equal to zero. e. exactly equal to one.
Among all the combinations of goods attainable by a consumer facing a budget constraint, the one that maximizes total utility is the one that
a. maximizes marginal utility per dollar spent on each good b. maximizes marginal utility per pound, or other physical quantity, of each good c. equates the marginal utilities per dollar spent on each good d. equates the marginal utilities per pound, or other physical quantity, of each good e. drives the marginal utility of each good to zero