The multiplier effect indicates that:
A. a decline in the interest rate will cause a proportionately larger increase in investment.
B. a change in spending will change aggregate income by a larger amount.
C. a change in spending will increase aggregate income by the same amount.
D. an increase in total income will generate a larger change in aggregate expenditures.
B. a change in spending will change aggregate income by a larger amount
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In practice, under the EMS, a member country
A) could never change its interest rate. B) could change its interest rate only if other countries changed theirs as well. C) must apply to a special European Commission in order to change its interest rate. D) had complete freedom in choosing the interest rate it wanted. E) had complete freedom in choosing its interest rate only if it is a very small country.
Since 1996, _____
a. U.S. productivity growth has skyrocketed, at least initially, as more computers were installed b. the computer sector has grown faster than the U.S. economy as a whole c. spending on computers has been approximately constant as a fraction of total U.S. investment spending d. the contribution of computers to U.S. productivity growth has been negative e. computing technology has not improved enough to have a measurable impact on U.S. productivity