The amount of spending on imports depends solely on income.
Answer the following statement true (T) or false (F)
False
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The figure shows the market for books before and after a sales tax is introduced. Each week, the tax creates a deadweight loss of ________, decreases consumer surplus by ________, and decreases producer surplus by ________
A) $15; $10; $5 B) $12; $8; $4 C) $3; $10; $5 D) $3; $2; $1
When economists use the term "ceteris paribus," they mean that: a. the causal relationship between two economic variables cannot be determined. b. the analysis is true for the individual but not for the economy as a whole
c. all other variables except the ones specified are assumed to be constant. d. their conclusions are based on normative rather than positive economic analysis.
Which of the following is the correct formula for the simple spending multiplier?
a. (1-MPC)/1 b. 1/(1-MPC) c. MPS/(1-MPC) d. MPC/(1-MPS)
If the growth rate for GDP was 9 percent and GDP in year 1 was 100, then GDP in year 2 would be:
A. 90. B. 109. C. 190. D. 199.