If the imports are no longer 0, then
What will be an ideal response?
the size of the multiplier will decrease
You might also like to view...
An equation in the simultaneous equations model satisfies the order condition for identification if:
A. the number of excluded endogenous variables from the equation is at most as large as the number of right-hand side exogenous variables. B. the number of excluded endogenous variables from the equation is at least as large as the number of right-hand side exogenous variables. C. the number of excluded exogenous variables from the equation is at most as large as the number of right-hand side endogenous variables. D. the number of excluded exogenous variables from the equation is at least as large as the number of right-hand side endogenous variables.
When a U.S. restaurant purchases French wine and the French wine company uses the proceeds to buy U.S. government debt, U.S. ________ and there is a capital ________ the United States.
A. imports increase; inflow to B. imports decrease; inflow to C. exports increase; outflow from D. imports increase; outflow from
Suppose the market for shoes consists of three consumers. The table below shows the quantity demanded at various prices for each consumer:Price PerPairPairs Demandedby PatPairs Demandedby LeighPairs Demandedby Chris$100010$75031$50173$302105What is the market demand for shoes when the price is $50 a pair?
A. It will depend on the quantity supplied when the price is $50 a pair. B. 11 pairs C. 7 pairs D. 15 pairs
If a wealthy nation such as the United States trades with a poorer, less developed nation like Cambodia, then it is likely true that:
A. Cambodia is pressured to enter trade and not benefiting at all. B. the United States is being charitable and not benefiting from the trade at all. C. the United States is taking advantage of Cambodia and is the only beneficiary to the trade. D. both the United States and Cambodia can benefit from trading.