If the MPC is 2/3, then 2/3 of the effect of an increase in government purchases on aggregate demand will come from increased consumption
a. True
b. False
Indicate whether the statement is true or false
True
Economics
You might also like to view...
When computing national income, which of the following is included in compensation of employees?
A) wages and salaries paid to employees B) employers' contributions to Social Security and employee benefit plans C) the monetary value of fringe benefits, tips, and paid vacations D) all of the above
Economics
Which of the following is NOT possible according to the law of demand?
A) a horizontal demand curve B) a vertical demand curve C) a downward-sloping supply curve D) an upward-sloping demand curve
Economics