The size of the spending multiplier depends on the marginal ...

[silviawilliams41]

The size of the spending multiplier depends on the marginal propensity to consume (MPC).
 a. True
  b. False
  Indicate whether the statement is true or false

Question 2

Which of the following best describes the idea of a political business cycle?
 a. Politicians have a bias to cut taxes and increase government spending.
  b. Special interests result in alternating federal deficits.
  c. Politicians will use fiscal and monetary policy to cause output, real incomes, and employment to be rising prior to elections.
  d. Good intentions of politicians influence the business cycle.

[mtmmmmmk]

Answer to Question 1

True

Answer to Question 2

c