When all the factors of aggregate expenditure are influenced by income, the multiplier becomes a function of the:
a. marginal propensity of government purchases
b. marginal propensity to consume out of disposable income.
c. marginal propensity of aggregate expenditure.
d. marginal propensity to import.
c
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If Mexico imports more than it exports to Canada, this contributes to
a. a favorable balance of trade for Mexico b. an unfavorable balance of trade for Canada c. Canadians having to borrow pesos from the foreign exchange market d. Mexicans buying assets in Canada e. a favorable balance of trade for Canada
If the government removes a $1 tax on sellers of gasoline and imposes the same $1 tax on buyers of gasoline, then the price paid by buyers will
a. increase, and the price received by sellers will increase. b. increase, and the price received by sellers will not change. c. not change, and the price received by sellers will increase. d. not change, and the price received by sellers will not change.
What is GDP expressed in constant, or unchanging, prices called?
(A) Price level (B) Real GDP (C) Net national product (D) Nominal GDP
Local banks could pass the risk involved in holding mortgage debts on to an investor with a higher risk tolerance using:
A. leveraged investments. B. government-backed securities. C. leveraged securities. D. mortgage-backed securities.