If the MPC is 0.8 and the MPM is 0.3, the open economy multiplier is 5.

Answer the following statement true (T) or false (F)


False

Economics

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Distinguish the laws of demand and supply. How are the laws of demand and supply illustrated graphically? 

What will be an ideal response?

Economics

In the classical model, a shift to the right in aggregate demand would result in

A. an increase in the price level. B. a permanent increase in unemployment. C. a permanent shift past full employment. D. a permanent increase in real incomes.

Economics

The falling phase of a business cycle measured by a decrease in real GDP is called:

A) hyperinflation. B) expansion. C) recession. D) peak.

Economics

Price discrimination allows a monopolist to make higher profits.

Answer the following statement true (T) or false (F)

Economics