The total government expenditure multiplier is less than one because
A) government expenses affect labor demand.
B) labor supply reacts to interest rate changes and consumption demand is affected by taxes.
C) investment demand falls dramatically when the government goes into debt.
D) the marginal propensity to consume is less than one.
B
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The consumer confidence index can be defined as:
a. an economic index that measures how consumers feel about their government. b. an economic index that measures how confident companies are about keeping their current consumers. c. an economic index that measures household expectations about the economy. d. an economic index that measures how investors feel about their investments in the stock market. e. an economic index used to measure consumers' confidence on a particular brand.
When a good is nonexcludable,
a. it is impossible or very costly to exclude nonpaying customers from receiving the good. b. individuals will have an incentive to become free riders. c. it will be difficult for a private firm producing the good to generate revenue sufficient to cover the cost of production. d. all of the above are true.