For a small country with a closed economy, if the marginal propensity to save is equal to 0.2, then the spending multiplier indicates that a $10 exogenous increase in government spending will lead to a $20 increase in gross domestic product (GDP).
Answer the following statement true (T) or false (F)
False
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
Absolute advantage is the ability to produce a good using fewer inputs than another producer.
Answer the following statement true (T) or false (F)
The order of payment of corporate earnings is bondholders, preferred stockholders, convertible stockholders, and finally common stockholders
Indicate whether the statement is true or false
Which of the following combinations is plausible, as it relates to a nation's balance of payments?
A. Current account = $+40 billion; capital account = $+20 billion; financial account = $-50 billion. B. Current account = $-50 billion; capital account = $+20 billion; financial account = $+30 billion. C. Current account = $+10 billion; capital account = $+40 billion; financial account = $+50 billion. D. Current account = $+30 billion; capital account = $-20 billion; financial account = $-50 billion.