If the marginal propensity to consume is 0.80, the value of the spending multiplier will be 5
a. True
b. False
Indicate whether the statement is true or false
True
Economics
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According to both the equation of exchange and the quantity theory of money
A) an increase in the money supply will decrease real Gross Domestic Product (GDP). B) a decrease in the money supply will decrease the velocity of money. C) a decrease in the money supply will decrease the price level. D) an increase in the money supply will increase real Gross Domestic Product (GDP).
Economics
Everything else held constant, an expansionary ________ policy will cause the interest rate to rise, while an expansionary ________ policy will cause the interest rate to fall
A) monetary; monetary B) monetary; fiscal C) fiscal; monetary D) fiscal; fiscal
Economics