If the marginal propensity to import is ________, then a $2 trillion increase in disposable income would increase import expenditure by $0.2 trillion
If the marginal propensity to import is ________, then a $2 trillion increase in disposable income would increase import expenditure by $0.6 trillion.
A) 0.1; 0.3 B) 0.6; 2.0 C) 0.2; 0.6 D) 1.0; 3.0 E) 0.3; 0.1
A
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Which of the following most likely would decrease frictional unemployment?
A) an increase in the number of high school and college graduates B) effective Internet-based employment services and job registries C) an expansion of unemployment compensation benefits D) All of the above would decrease frictional unemployment.
A good or service or a resource is excludable if
A) it is possible to prevent someone from enjoying its benefits. B) it is not possible to prevent someone from enjoying its benefits. C) its use by one person decreases the quantity available for someone else. D) its use by one person does not decrease the quantity available for someone else.
Which of the following is NOT a tool used by the Fed to implement monetary policy?
A. Printing Federal Reserve notes and minting coins B. The discount rate C. The reserve requirement D. Open market operations
The goals of monetary policy tend to be interrelated. For example, when the Fed pursues the goal of ________, it also can achieve the goal of ________ simultaneously
A) high employment; economic growth B) stability of financial markets; a low current account deficit C) high employment; lowering government spending D) economic growth; a low current account deficit