The size of the simple spending multiplier is determined by the proportion of each new dollar that households decide to spend and how much they decide to save
a. True
b. False
Indicate whether the statement is true or false
True
Economics
You might also like to view...
Which of the following does NOT cause a rightward shift in the supply curve?
A) a reduction in resource costs B) an increase in technology C) a reduction in the price of the good D) a reduction in the expected future price of the good
Economics
Assuming that rational expectations theory does not hold, if a central banks attempts to reduce the inflation rate what happens to the unemployment rate in the short-run?
Economics