What is the government purchases multiplier if the tax rate is 0.2 and the marginal propensity to consume is 0.8? Assume the economy is closed

If average product is decreasing, then marginal product must be negative

Indicate whether the statement is true or false

When negative externalities exist in a market, that market will produce too little output compared to the socially efficient level of output

a. True b. False Indicate whether the statement is true or false