An increase in the marginal propensity to import will cause

A) the ZZ line to become flatter and a given change in government spending (G) to have a larger effect on domestic output.
B) the ZZ line to become flatter and a given change in government spending (G) to have a smaller effect on domestic output.
C) the ZZ line to become steeper and a given change in government spending (G) to have a larger effect on domestic output.
D) the ZZ line to become steeper and a given change in government spending (G) to have a smaller effect on domestic output.


B

Economics

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A) perfect competition. B) monopolistic competition. C) oligopoly. D) monopoly. E) monopolistic oligopoly.

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The best test of an economic theory is: a. the rigor of its mathematical formulation. b. its ability to explain and predict

c. the accuracy of its assumptions. d. the level of real-world detail it captures.

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As of 2015, per capita GDP in the United States was approximately

A. $56,000. B. $37,000. C. $26,000. D. None of the choices are correct.

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A government is considering levying an alcohol tax to raise revenue to finance health care benefits. People for the tax argue that alcohol demand is price inelastic. Which of the following statements is true?

A. The alcohol tax may not raise as much revenue as anticipated in the years to come because alcohol demand is more elastic the longer the period of time consumers have to adjust. B. This tax will not raise much revenue either in the short term or the long term because demand is price inelastic. C. This is a very good way to raise revenue both in the short term and in the long term because there are no close substitutes for alcohol. D. No tax revenue can be raised in this way because alcohol sellers will just lower their price by the amount of the tax, and therefore the consumer price of alcohol will not change.

Economics