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:

Negotiate Without Endorsement

The act of negotiating a negotiable instrument without signing an endorsement, transferring the instrument to another party intact.

Refuse Payment

The act of deliberately not paying for a service or product received.

Consumer Note

A debt instrument where the borrower promises to pay back a certain amount of money to the lender at a future date, typically used for personal, family, or household purchases.

Bills Of Exchange Act

Legislation that regulates the transfer, creation, and definition of bills of exchange, a type of financial instrument.