The labor force of a country is 150 million, of which 60 million are employed. Therefore, the unemployment rate in this country is 40%

Cash is included in m2

a. true b. false

Which of the following reduces the magnitude of the expenditure multiplier?

A) higher marginal tax rates B) decrease in saving C) decrease in the marginal propensity to consume D) decrease in imports E) decrease in government purchases of goods and services