Often, the farther real GDP is below potential GDP,
A) the smaller the multiplier effect.
B) the larger the multiplier effect.
C) the less effective is the multiplier effect.
D) the less meaningful is the multiplier effect.
B
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Erin and Deidre, two residents of Ithaca, New York, are planning a trip to Boston. Erin, the sales manager for a large retailer, has to attend a business meeting
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A company that retains a high bond rating during a recession in which many other companies see their bond ratings cut will experience
A) an increased flow of funds into the market for its securities. B) an increased demand for its securities, resulting in a higher expected return. C) a decreased demand for its securities, resulting in a lower expected return. D) a decreased flow of funds into the market for its securities.