The reason why inflation reduces the value of the multiplier is that part of the change in demand is
A. absorbed by price changes.
B. saved rather than spent.
C. matched by changes in supply.
D. matched by changes in income.
Answer: A
Economics
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For the sake of this question, say that total inventories in the U.S. was $1 trillion in one year and then $1 trillion the next year. Would there be any inventory investment?
A. yes B. no C. cannot tell with the given information
Economics
Giuseppe's Pizza is a perfectly competitive firm. The firm's costs are shown in the table above. The firm's shutdown point is
A) $12. B) $17. C) $8. D) $2.
Economics