In an economy with no income taxes or imports, if the MPC is .75, the multiplier is
A) 0.50. B) 4.00. C) 0.33. D) 3.00. E) 0.25.
B
Economics
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Patents are a form of monopoly that society allows because they _____.
(A) Set up a situation in which only a few manufacturers can control an industry. (B) Give companies the right to decide who will be allowed to use their products. (C) Encourage firms to research and develop new products that benefit society as a whole. (D) Maintain an orderly way for companies to make a lot of money.
Economics
If a good has an income elasticity of demand greater than 1, one might classify that good as
A) a necessity. B) a luxury. C) unusual. D) inelastic.
Economics