This topic contains a solution. Click here to go to the answer

Author Question: Firms have no inventories that they can draw down to meet an increase in demand. This will (Read 35 times)

charchew

  • Hero Member
  • *****
  • Posts: 579

Firms have no inventories that they can draw down to meet an increase in demand. This will


◦ have no effect on the multiplier, because the 
MPC remains unchanged.
◦ decrease the size of the multiplier, because firms will be able to respond more quickly to a change in demand.
◦ increase the size of the multiplier, because output will need to immediately respond to changes in demand.
◦ either increase or decrease the multiplier, depending on the size of the 
MPC.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by charchew on Apr 19, 2019

tdewitt

  • Sr. Member
  • ****
  • Posts: 318
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 49% of students answer this correctly




tdewitt

  • Sr. Member
  • ****
  • Posts: 318

 

Did you know?

About 3% of all pregnant women will give birth to twins, which is an increase in rate of nearly 60% since the early 1980s.

Did you know?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

Did you know?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

Did you know?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

For a complete list of videos, visit our video library