The multiplier tells us how much __________ changes after a shift in ____________?

Related Mcqs:

1. An upward shift in marginal cost _____ output and an upward shift in marginal revenue ______ output?

   A. reduces; reduces
   B. reduces; increases
   C. increases; increases
   D. increases; reduces

2. If two countries A and B are member of a currency union and there is a shift in consumer preferences away from the goods of country A and towards those of country B than which one of the following would help to offset the effect of the resulting changes in aggregate demand in A and B on inflation and unemployment in the tow countries ?

   A. A high degree of labour mobility between the tow countries
   B. An increase in government spending in country (A)
   C. A depreciation in the foreign exchange value of the common currency
   D. A low degree of capital mobility between the two countries

3. The Short run Phillips curve can shift in response to changes in ?

   A. Inflationary expectations
   B. unemployment
   C. the inflation rates
   D. wage rates

4. In an Open economy leakage to imports ____________ the value of the multiplier ?

   A. reduce
   B. increase
   C. do not change
   D. None of the above

5. The quantity theory of money says that changes in ____lead to equivalent changes in ____ but have no effect on ______?

   A. prices, wages, output and employment
   B. output prices, employment
   C. nominal money, the price level, output and employment
   D. nominal money output prices

6. If the MPC is 0.5 the multiplier is ?

   A. 2
   B. 1/2
   C. 0.2
   D. 20

7. The multiplier is calculated as___________?

   A. 1(1-MPC)
   B. 1/MPS
   C. 1/MPC
   D. a or b

8. The total multiplier for the economy will reflect ?

   A. MPC and MPT
   B. MPT and MPZ
   C. MPC and MPZ
   D. MPC, MPT and MPZ

9. A bank has excess reserves to lend but is unable to find anyone to borrow the money This will _________ the size of the money multiplier?

   A. reduce
   B. have no effect on
   C. increase
   D. double

10. As the MPS increases the multiplier will ?

    A. decrease
    B. remain constant
    C. increase
    D. either increase or decrease depending on the size of the change in investment