According to Adam Smith's invisible hand doctrine:
a. self-interest best serves the interests of society.
b. laissez faire must be improved by government intervention.
c. producers should serve the best interests of society.
d. only laissez faire mercantilism best serves the interests of society.
Question 2
The spending multiplier is defined as:
a. the ratio of the change in equilibrium output to the initial change in spending.
b. the change in initial spending divided by the change in personal income.
c. 1 / (marginal propensity to consume).
d. 1 / (1 marginal propensity to save).
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