If the domestic income of a nation’s citizens increase, then we might expect net export spending to:
A. increase.
B. decrease.
C. remain constant.
D. there is not enough information to determine what would happen.
B. decrease.
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If the marginal propensity to save (MPS) increases, the multiplier
A) decreases. B) can either increase or decrease, depending on what happens to the marginal propensity to consume (MPC). C) increases. D) stays the same.
Suppose Rebecca needs a dog sitter so that she can travel to her sister's wedding. Rebecca values dog sitting for the weekend at $200 . Susan is willing to dog sit for Rebecca so long as she receives at least $175 . Rebecca and Susan agree on a price of $185 . Suppose the government imposes a tax of $30 on dog sitting. The tax has made Rebecca and Susan worse off by a total of
a. $30. b. $25. c. $10. d. $5.
In general, high unemployment is associated with
a) High levels of labour market co-ordination b) Low levels of labour market co-ordination c) Both high and low levels of labour market co-ordination d) Neither high nor low levels of labour market coordination e) Other factors and is unrelated to labour market co-ordination
Sometimes the response to price signals, rather than the signals themselves, may be flawed.
Answer the following statement true (T) or false (F)