A decrease in the price level in an economy implies that _____
a. the spending multiplier will be equal to the marginal propensity to consume
b. there will be an increase in investment
c. there will be a decrease in investment
d. the value of the spending multiplier will be equal to one
e. the value of the spending multiplier will be equal to zero
b
Economics
You might also like to view...
The most direct way in which money eliminates the need for a double coincidence of wants is through its use as a medium of exchange
Indicate whether the statement is true or false
Economics
Below the short-run shutdown price, the firm
A) is earning positive economic profits. B) is earning negative economic profits. C) is making a normal rate of return on its capital investment. D) may be earning a positive or negative economic profits depending upon costs.
Economics