In reality, the simple spending multiplier [1/(MPS+MPI)] is applicable only to countries whose imports are a substantial fraction of income in foreign countries

a. True
b. False
Indicate whether the statement is true or false


False

Economics

You might also like to view...

Looking at the table above, real wages ________ from 2011 to 2012, and real wages ________ from 2012 to 2013.

A) fell; rose
B) fell; fell
C) rose; fell
D) rose; rose

Economics

The table below shows the utility schedule for a consumer of candy bars. Candy Bars ConsumedTotal Utility001529312414515615713The consumption of which candy bar yields the greatest marginal utility?

A. seventh B. sixth C. fifth D. first

Economics

The demand for a product produced in a perfectly competitive market permanently increases. In the short run, the price

A) rises and each firm produces less output. B) rises and each firm produces more output. C) does not change as new firms enter the industry. D) does not change because each firm produces more output.

Economics

The composition of M2 as of December 2010 includes saving deposits at savings banks and credit unions

a. True b. False Indicate whether the statement is true or false

Economics