Which of the following statements is true?
A. The larger a nation's marginal propensity to import, the smaller the open-economy multiplier.
B. The larger a nation's marginal propensity to export, the smaller the open-economy multiplier.
C. The smaller a nation's marginal propensity to import, the smaller the open-economy multiplier.
D. The larger a nation's marginal propensity to consume, the smaller the open-economy multiplier.
Answer: A
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Answer the following statement(s) true (T) or false (F)
1. The substitution and income effects are in opposition when the price of an inferior good changes. 2. The income and substitution effect always go in opposite directions. 3. An inferior good is one that is of lower quality than a substitute. 4. When the price of a good rises, the income effect always reduces the quantity demanded of the good. 5. If the price of a non-Giffen good falls, then the income effect causes a rise in the quantity demanded.
Which of the following is not a "pull" factor in urban migration?
a. higher urban incomes b. better urban job opportunities c. more modern way of life d. rural land consolidation e. all are pull factors f. none is a pull factor
Government restrictions on the use of an open-access resource
a. may improve efficiency b. will decrease efficiency c. are unnecessary d. contribute to pollution of the resource e. contribute to depletion of the resource
Theresa opens a 5-year CD for $1,000 that pays 2% interest compounded annually. What is the value of the CD at the end of the 5 years?
a. $1,104.08 b. $1,100.00 c. $1, 020.00 d. $1,220.10