If a country's imports are very important in determining the volume of exports from its trading partners, then:
a. the simple spending multiplier understates the true value of the multiplier.
b. the spending multiplier will be equal to 1/marginal propensity to import.
c. the simple spending multiplier is an accurate measure of the multiplier effect.
d. the simple spending multiplier will be equal to 1/MPC
e. the spending multiplier will be equal to 1/marginal propensity to save.
a
You might also like to view...
In the United States in 2012, the CDC estimated that the total number of people with diabetes (both diagnosed and undiagnosed cases) was highest for people in the age range of ________, and the percentage of people with diabetes was highest for people in the age range of ________.
A) 65 and older; 20-44 B) 65 and older; 65 and older C) 20-44; 45-64 D) 45-64; 65 and older
The short-run supply curve for the perfectly competitive firm is that part of the marginal cost curve that lies above the average fixed cost curve
a. True b. False Indicate whether the statement is true or false
Refer to the graph below. 
Given the production possibility curve, which point is unattainable?
A. A B. B C. C D. D
Which of the following statements about incentives is true?
a. Changing one incentive can result in several unseen effects. b. Understanding how people respond to incentives helps government planners organize the economy. c. Fair-minded people who care about others will not be affected by incentives. d. Emphasizing incentives ignores altruistic nonmonetary values.