Which is NOT a function of money?

A marginal propensity to save of 0.20 results in a multiplier of

A) 2. B) 5. C) 1.25. D) 8. E) 1.

Under rate-of-return regulation, average cost pricing

A) is inflated so the firm can make economic profits. B) includes variable costs but not a cost for capital. C) includes what they consider to be a fair rate of return on investment. D) includes a cost for capital that generates an above normal rate of return.