D. Overstates the actual multiplier because it excludes leakages in domestic spending from the purchase of imports or the paying of taxes
A. The multiplier effect
B. A recessionary gap
C. An inflationary gap
D. The marginal propensity to save
A. The multiplier effect
Economics
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Differentiate between a managed exchange rate and a fixed exchange rate
What will be an ideal response?
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According to the equation of exchange, if the quantity of money is $20 billion, velocity 3, and real GDP is $6 billion, then the price level is
A) 10. B) 1.1. C) 2. D) 1.6. E) 40.
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The quantity of money demanded is positively related to the interest rate
Indicate whether the statement is true or false
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In a situation where a car salesman is selling cars on behalf of the dealer, the salesman is the
a. Principal b. Agent c. Both of the above d. None of the above
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