Examlex
Tech A says that vehicles with smaller engines require less gear ratios to operate efficiently. Tech B says that manufacturers have been adding more gear ratios in a quest for better fuel economy. Who is correct?
Monetary Policy
The process by which the central bank, or monetary authority of a country, controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency.
Full Employment
A situation in an economy where all available labor resources are being used in the most efficient way, typically with only natural unemployment remaining.
Marginal Propensity
Measures the portion of additional income that an individual or entity spends on consuming goods rather than saving.
Multiplier
The ratio of the change in an endogenous variable to the change in an exogenous variable it is dependent on, often used in the context of fiscal policy’s effect on the economy.
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