Question
The "Multiplier" effect is larger when the marginal
propensity to consume (MPC) is:Solution
The simple multiplier is 1/(1-MPC) or 1/MPS. A higher MPC (lower MPS) means more of each income round is spent, creating a larger multiplier.
If the regression coefficients of x on y and y on x are -1/4 and -1/9 respectively, then what is the correlation coefficient between x and y?
Of 10 computer chips, 4 are defective. What is the probability of selecting 3 without replacement, only one of which is defective?
What is the standard error of regression y on x when the standard deviation of y is 2 and the coefficient of determination is 0.36
What is the currency deposit ratio (cdr)?
C= 0.8(1-t)Y , t=0.25, I=200 and G=800. Calculate the change in output when tax rate increases to 0.50
Under a fixed exchange rate system (A)_________ would be an exogenous monetary policy instrument, whereas under a flexible exchange rate system (B) ____...
If interest payments are subtracted from gross fiscal deficit, the remainder will be
The GDP’s (at factor cost) and population sizes of two countries A and B were identical in a particular year. Which of the following statements is the...
If a country’s policy makers were to continuously use expansionary monetary policy in an attempt to hold unemployment below the natural rate the long-...
Which of the following is an automatic stabilizer in macroeconomics?
