If autonomous spending increases, the aggregate expenditure function becomes steeper.
Answer the following statement true (T) or false (F)
False
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A change in the interest rate will generally affect the
A) level of investment. B) level of consumption. C) the amount of money people want to hold. D) All of these.
An increase in autonomous investment in a small open economy will cause ________
A) a trade surplus to shrink B) a trade deficit to increase C) lower net capital outflows D) all of the above E) none of the above
Estimation of dynamic multipliers under strict exogeneity should be done by
A) instrumental variable methods. B) OLS. C) feasible GLS. D) analyzing the stationarity of the multipliers.
Suppose you are a U.S. importer purchasing coffee from Guatemala at a dollar price of $10,000 . If the bank charges $0.12 per quetzal, you would have to buy 120,000 quetzals to settle the account with the Guatemalan exporter
a. True b. False Indicate whether the statement is true or false