A larger marginal propensity to import will make the slope of the aggregate expenditure function flatter
Indicate whether the statement is true or false
TRUE
You might also like to view...
Which of the following determines the amount of money the banking system as a whole can create?
A) the limit on profits by banks imposed by the U.S. Congress B) the quantity of vault cash held by banks C) the gold reserves held by the Federal Reserve D) the quantity of bank reserves
When the government enacts policies that lead to lower mortgage lending standards and lower interest rates, their actions can indirectly lead to higher home prices
Indicate whether the statement is true or false
One school of thought that emphasizes the role that taxes play in an economy's supply of output is known as:
A. demand-pull economics. B. classical economics. C. tax-and-spend economics. D. supply-side economics.
The Keynesian short-run aggregate supply curve is demonstrated graphically as a
A. downward sloping curve. B. upward sloping curve. C. horizontal line. D. vertical line.