Fiscal policy has a greater impact in a closed economy than it does in an open economy
Indicate whether the statement is true or false
TRUE
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In the above figure, a shortage could be caused by a government price ceiling set at
A) $1.00. B) $2.00. C) $2.50. D) $3.00.
Which of the following is a stock variable?
a. Government spending b. Investment c. Daily household consumption d. Saving e. Wealth
If all large firms in the economy were broken into smaller firms, the result might be
a. decreased manufacturing efficiency in some industries. b. increased prices for some manufactured goods. c. decreased investment in research and development in some industries. d. All of the above are correct.
As a result of the recent financial crisis, some analysts believed that the MPC in the U.S. declined. If this is true, the value of the multiplier is now
A. smaller. B. larger. C. the same. D. magnified to a larger amount.