If the Economy Is Already Producing at Its Potential,_____

question 64

Multiple Choice

If the economy is already producing at its potential,_____.

• A)the spending multiplier equals 1/(1 - MPC)in the long run
• B)the spending multiplier is less than 1/(1 - MPC)in the long run
• C)the spending multiplier is more than 1/(1 - MPC)in the long run
• D)the spending multiplier equals zero in the long run
• E)the aggregate demand curve is horizontal

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Definitions:

FOB Destination

A shipping term where the seller bears shipping costs and retains ownership until the goods reach the buyer's location.

Legal Title

The formal ownership of an asset or property, recognized by law, granting the holder specific rights and responsibilities.

Cost of Goods Available

It represents the total value of inventory available for sale during a period, calculated by adding the cost of goods purchased or manufactured to the opening inventory.

Consignment Arrangement

An agreement where goods are placed in the hands of another party to sell, but the ownership remains with the supplier until the goods are sold.