If the marginal propensity to consume of an economy is 0.7, then the simple spending multiplier is:
a. 3.3.
b. 0.3.
c. 1.3.
d. 1.
a
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In 2009, the return on American investments abroad was _____ the return earned by foreigners on their investments in the U.S.
A. larger than B. about equal to C. smaller than
Assume the interest parity condition holds and that individuals expect the dollar to appreciate by 5% during the coming year. Given this information, we know that
A) the interest rate differential between the two countries is less than 5%. B) i < i. C) i = i. D) individuals will only hold foreign bonds. E) none of the above
Acreage set-asides shift the food supply curve to the right and decrease farm prices.
Answer the following statement true (T) or false (F)
The two fundamental sections of the Balance of Payments accounting system are
A. aggregate consumption and government spending. B. physical investment and ephemeral investment. C. the current account and the capital account. D. the physical and monetary direct transfers among individuals.