Answer the following statements true (T) or false (F)
If the marginal propensity to save is 0.4, the multiplier is 2.5.
Money will fail to serve as a medium of exchange if it ceases to be a store of value.
Aggregate expenditure includes consumption spending, unplanned investment spending, government purchases, and net exports.
When Jack's income increases by $1,000, he spends an additional $850 dollars. This implies that his marginal propensity to consume is 0.85.
When the dollar becomes stronger compared to the Japanese Yen, then the Japanese imports from the U.S. will increase.
True
True
False
True
False
You might also like to view...
How do we calculate average fixed cost and why does average fixed cost fall as output increases?
What will be an ideal response?
In the monetary small open-economy model with a fixed exchange rate, the domestic
A) government loses control over the level of domestic government spending. B) government loses control over the level of domestic taxes. C) government loses control over the level of domestic government spending and domestic taxes. D) central bank loses control over the domestic stock of money.
Pricing policy can serve as a barrier to entry
Indicate whether the statement is true or false
Assume that Nation A's production possibilities is either 30 units of bricks or 50 units of wheat. Nation B's production possibilities is 20 units of bricks and 40 units of wheat. Which of the following is true?
A. Nation A is the least-cost producer of wheat B. The high-cost producer of bricks is Nation A C. The opportunity cost of wheat production is lower in Nation B D. According to the principle of comparative advantage, Nation B should specialize in the production of bricks