The addition of imports reduces the value of the multiplier
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
In the circular flow model with the government sector, transfers
A) flow only through the goods market. B) flow in the same direction as do taxes. C) flow in the opposite direction as do taxes. D) to firms flow in the same direction as do rent, wages, interest, and profits. E) to households flow in the same direction as do expenditures on goods and services.
In the figure above, when the quantity of milk produced is 600 gallons per day, what is the deadweight loss?
A) $250 B) $125 C) $500 D) $50
When talking about aggregate supply, it is necessary to
A) focus on the short run. B) focus on the long run. C) distinguish between the long-run aggregate supply curve and the short-run aggregate supply curve. D) distinguish between the long-run aggregate supply curve and the long run aggregate demand curve when all adjustments to price level changes have been made.
Over time, the money multiplier:
A. runs counter cyclic to the business cycle. B. was relatively stable until 2008, when it rose dramatically. C. was relatively stable until 2008, when it dropped dramatically. D. has historically followed the business cycle.