The multiplier tells us the relationship between
A) the interest rate and the level of investment expenditure.
B) the exchange rate and the level of exports.
C) the exchange rate and the level of imports.
D) a change in autonomous spending and the resulting change in equilibrium real GDP.
D
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A pharmaceutical company executive has to decide whether to fund a new drug development project. For this project, a success would earn $90 million and a failure would cost $10 million in lost profits. At what probability of expected success should she fund the project?
a. 0.10 b. 0.20 c. 0.80 d. 0.90
The Monetary Control Act of 1980:
a. required banks to make home loans. b. eliminated many forms of competition among financial institutions. c. created sharper distinctions among various financial institutions. d. none of these.
Suppose there is a simultaneous increase in the demand for rice and increase in the supply of rice. Which of the following will occur as a result of these simultaneous events?
A. The market clearing price may rise, fall, or stay the same, but the equilibrium quantity will rise. B. The market clearing price will fall, but the equilibrium quantity will rise. C. Both the market clearing price and equilibrium quantity will rise. D. The market clearing price will fall, but the equilibrium quantity may rise, fall, or stay the same.
Horizontal merger occurs when
A. two firms merge where each is about the same size. B. two firms merge where one had sold its output to the other as an input. C. the merger moves the combined firm onto the horizontal portion of its long-run average cost curve. D. two firms producing a similar product merge.