When x increases leading decrease in output, a better policy tool is
A) decrease in policy rate.
B) increase in policy rate.
C) increase in government spending.
D) decrease in government spending.
A
Economics
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The basic reason for the multiplier effect is that, when you spend money,
a. another person receives income. b. another person must pay for it. c. your money balances are reduced. d. your net worth decreases.
Economics
A pure monopoly is not allocatively efficient because at the profit-maximizing level of output ________.
A. P > MR B. P > AVC C. P > ATC D. P > MC
Economics