Suppose the multiplier effect for Japan is 0.8 for any $1 billion change in U.S. government purchases. Therefore, Japanese real GDP will rise by $8 billion when U.S. government spending rises by $10 billion
a. True
b. False
Indicate whether the statement is true or false
True
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________ is the process of researching and developing profitable new products and services by financial institutions
A) Financial engineering B) Financial manipulation C) Customer manipulation D) Customer engineering
On a given short-run Phillips curve which of the following is held constant?
a. the level of GDP b. the unemployment rate c. expected inflation d. employment
Exhibit 5-9 Supply and Demand Curves for Good X
?
In Exhibit 5-9, assume the government places a $200 per unit sales tax on Good X. The percentage of the burden of taxation paid by consumers of Good X is:
A. zero. B. 25 percent. C. 50 percent. D. 100 percent.
A checking account balance in a commercial bank is
A. an asset readily usable for most transactions. B. part of the currency supply. C. not liquid enough to be considered money. D. a time deposit.