Increases in the marginal propensity to consume (MPC), other things constant, _____
a. increase the value of the multiplier
b. decrease the value of the multiplier
c. increase the marginal propensity to save
d. shift the aggregate expenditure curve downward
e. cause a downward movement along the aggregate expenditure curve
a
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Recently, countries with higher per capita income have tended to have
A. higher GDP growth rates than poor countries B. lower GDP growth rates than poor countries C. negative GDP growth rates D. no tendency to grow faster or slower than poor countries
When deflation occurs,
A) the nominal interest rate is equal to the real interest rate and inflation is positive. B) the real interest rate is greater than the nominal interest rate. C) the nominal interest rate is equal to the real interest rate and inflation is negative. D) the nominal interest rate is greater than the real interest rate.