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Author Question: If it becomes less expensive for firms to hold excess capital and labor, the multiplier will (Read 55 times)

dbose

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on: Apr 19, 2019

Question 1

Suppose that the value of the multiplier has decreased in recent years. Which of the following could have caused this?


◦ Consumption has become less sensitive to changes in the interest rate.
◦ The costs of inventory storage have risen.
◦ Changes in the way the unemployment compensation fund is financed have made it less expensive for firms to lay off workers.
◦ There has been an increase in the demand for imported goods.

Question 2

If it becomes less expensive for firms to hold excess capital and labor, the multiplier will


◦ decrease.
◦ remain unchanged.
◦ increase.
◦ either increase or decrease depending on the value of the 
MPC.
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by dbose on Apr 19, 2019

Koolkid240

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Reply #1 on: Apr 19, 2019
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.
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dbose

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Reply 2 on: Apr 19, 2019
Great answer, keep it coming :)

dyrone

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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