If the marginal propensity to save is 0.3, the marginal propensity to import is 0.1, and the government increases expenditures by $10 billion, ignoring foreign-income repercussions, how much will gross domestic product (GDP) rise?
A. $10 billion.
B. $15 billion.
C. $20 billion.
D. $25 billion.
Answer: D
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Indicate how changes in monetary policy are transmitted to the goods and services market? Discuss for the case of an expansion in the money supply
The degree of international capital mobility is affected by:
a. The value of the domestic currency. b. Central bank capital controls. c. The monetary base. d. The money supply. e. The quantity of domestic currency traded per time period.
As a unit of account, money is used to
A) state prices of all goods and services. B) pay off future debts. C) hold purchasing power over time. D) exchange for goods and services.
When an individual is frictionally unemployed, the unemployment arises in part from
A) a short-term elimination of jobs because of a slowdown in business activity. B) individuals searching for appropriate employment. C) the permanent elimination of jobs because of a change in the structure of the economy. D) a reduction in the overall demand for workers' skills.