If the MPC is b, then the multiplier is
A) 1/(1 - b).
B) b/(1 - b).
C) 1/(1 + b).
D) b/(1 + b).
A
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Which of the following statements is true?
a. Goods are scarcer than services in an economy. b. Goods are scarce for neither the poor nor the rich. c. Goods are scarce for both the poor and the rich. d. Goods are scarce for the poor but not for the rich. e. Goods are scarce for the rich but not for the poor.
Improvements in and greater stocks of land, labor, capital, and entrepreneurial activity will shift the production possibilities curve: a. outward, such that more goods and services can be produced
b. outward, such that the cost-of-living rises. c. inward, such that the marketplace experiences a decrease in price and output levels. d. inward, because more resources will be used up and not renewed.