International trade tends to lower the value of the multiplier because
a. imports fall as GDP increases.
b. net exports fall as GDP increases.
c. net exports tend to rise as GDP increases.
d. exports fall as GDP increases.
b
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For barter to occur there must be
A) two people willing to pay with credit. B) a double coincidence of wants for each good to be exchanged. C) one person who pays cash. D) hyperinflation.
Use consumer indifference curves and budget lines to illustrate the effects of an increase in income for a normal good and an inferior good (use two graphs). Be sure your diagrams are fully and correctly labeled.
What will be an ideal response?
____ are unexpected temporary events that can either increase or decrease short-run aggregate supply
a. Profit effects b. Volatilities c. Supply shocks d. Misperception effects
Critics of advertising argue that firms use advertising to manipulate consumers' tastes
a. True b. False Indicate whether the statement is true or false