Suppose the Price Level Is Constant,output Is Demand-Determined,and the Economy

question 152

Multiple Choice

Suppose the price level is constant,output is demand-determined,and the economy is closed with no government.If the consumption function is C = (1/2) Y,the simple multiplier is

• A)2/3.
• B)1.
• C)2.
• D)3.
• E)Insufficient information to know.

---

Definitions:

Business Practices

The methods, strategies, and procedures employed by companies in the design, production, marketing, and sale of their products and services.

Sherman Act

A United States antitrust law passed in 1890 that outlaws monopolistic practices and promotes competition.

Trusts

Legal arrangements where one party, known as the trustor, grants another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary.

Market Competition

The rivalry among companies to attract customers and gain market share by offering better products, services, and terms.