Which of the following statements is true?
A. The smaller a nation's marginal propensity to save, the smaller the open-economy multiplier.
B. The smaller a nation's marginal propensity to export, the larger the open-economy multiplier.
C. The larger a nation's marginal propensity to import, the larger the open-economy multiplier.
D. The larger a nation's marginal propensity to consume, the larger the open-economy multiplier.
Answer: D
You might also like to view...
Refer to the table above. If the world price of trousers is $5 per pair, then which of the following statements is true?
A) All the four countries will import trousers. B) All the four countries will export trousers. C) Country A and Country D will export trousers, whereas Country B and Country C will import trousers. D) Country B and Country C will export trousers, whereas Country A and Country D will import trousers.
With reference to the operations of the ABB Group discuss the functioning of matrix form organizations
You're traveling in Ireland and are thinking about buying a new digital camera. You've decided you'd be willing to pay $125 for a new camera, but cameras in Ireland are all priced in euros. If the exchange rate is 0.85 euros per dollar, what's the
highest price in euros you'd be willing to pay for a camera? A) 105 euros B) 106.25 euros C) 110.15 euros D) 147 euros
Channel stuffing is
a. Shipping out sales at the beginning of the year b. Shipping out products only if you are certain that they would not be returned c. Shipping out products at the end of the year to mark them as earned revenue, even if you know that they would be returned later d. Shipping out products at the start of the year even though it is certain that there would be more demand during the year