In an economy with no income taxes or imports, the expenditure multiplier is
A) greater than 1 only if the MPC is greater than 1.
B) less than 1 only if the MPC is less than 1.
C) equal to 1 if the MPC is greater than 1.
D) greater than 1 if the MPC is less than 1.
E) always less than 1 no matter what the size of the MPC.
D
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If resource prices rise and the per-unit cost of producing a product increases as the firms in an industry expand output in response to an increase in demand, the long-run market supply curve for the product will:
a. be perfectly elastic (a horizontal line). b. be perfectly inelastic (a vertical line). c. slope upward to the right. d. be more inelastic than the short-run supply curve for the product.
A soil bank program pays ___________ in order to _________
a. farmers' mortgages; eliminate bankruptcy b. farmers' mortgages; reduce the parity price ratio c. farmers to not grow; reduce excess demand d. farmers to grow; rejuvenate the land e. farmers to not grow; reduce supply