The practical significance of the multiplier is that
A) it helps to stabilize the economy.
B) it keeps inflation within tolerable limits.
C) it magnifies relatively small changes in spending into larger changes in GDP.
D) it brings about a reduction of MPC.
Correct Answer:
Verified
Q112: Suppose that we reduce the federal budget
Q113: The Budget Act of 1990
A)did not change
Q114: In general,we could say that
A)liberal economists favor
Q115: A list of automatic stabilizers in the
Q116: Statement I: During periods of inflation the
Q118: Which of the following would NOT be
Q119: Statement I: In the 1930s,the federal government
Q120: Discretionary fiscal policy by the federal government
Q121: If the multiplier is 2,the MPC is
A).1.
B).2.
C).5.
D).8.
E)1.0.
Q122: Suppose that we reduce the federal budget
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