An increase in net exports will have a greater effect on equilibrium real GDP if the

A. marginal propensity to consume is smaller.
B. average propensity to consume is larger.
C. marginal propensity to save is larger.
D. marginal propensity to save is smaller.


Answer: D

Economics

You might also like to view...

Adam Smith believed that the individual pursuit of self-interest:

A. should usually be discouraged. B. always leads to an efficient outcome. C. is impossible in a perfectly competitive market. D. often promotes the broader interests of society.

Economics

The labor demand curve:

A. is provided by firms who want to hire workers at each given wage. B. is made up of workers who want to work for firms at each given wage. C. shows number of workers who are willing and able to work at higher wages. D. shows that the number of people who want to work increases as the wage increases.

Economics

Watching a movie on-demand in one's home is an example of a ____

a. merit good b. club good c. public good d. private good

Economics

If a group of sellers that can restrict entry into a market, they will often be able to enlarge their total profit by

a. raising price and reducing output. b. raising price and expanding output. c. lowering price and expanding output. d. raising price and leaving output unchanged.

Economics