In an open economy, the government purchases multiplier will be
A) smaller as the marginal propensity to consume increases.
B) smaller as the marginal propensity to import increases.
C) larger as the marginal propensity to tax increases.
D) larger as the marginal propensity to import increases.
B
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
If the exchange rate ________, the quantity of dollars demanded ________ and there is a movement up along the ________ curve for dollars
A) falls; increases; supply B) rises; increases; demand C) falls; decreases; demand D) rises; decreases; supply E) rises; decreases; demand
_____occurs when the burden of a tax statutorily placed on one party is borne by another party
a. Tax shifting b. Tax evasion c. Tax avoidance d. Tax amnesty
Which of the following statements is TRUE in the short run?
A) Generally, labor is a fixed input. B) Generally, capital is a fixed input. C) Raw materials are generally considered to be fixed inputs. D) None of the above.