The addition of imports reduces the value of the multiplier.
Answer the following statement true (T) or false (F)
True
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Explain the income effect and the substitution effects of a price change for a normal good
What will be an ideal response?
Sally is shopping for textbooks at the beginning of the semester. What is one reason she might decide to not purchase a textbook?
A) Her expected producer surplus is positive. B) Her expected consumer surplus is negative. C) Her expected consumer surplus is positive. D) Her expected profits are positive.
Why does the Fed have imperfect control over the money supply over short periods?
a. Because of unpredictable changes in reserve requirements b. Because the public responds to open market operations in unpredictable fashions c. Because the Fed does not know how much reserves will change when it buys or sells securities d. Because of unpredictable changes in public desire to hold cash and banks' desires to hold reserves
Bill created a new software program he is willing to sell for $300 . He sells his first copy and enjoys a producer surplus of $250 . What is the price paid for the software?
a. $50. b. $250. c. $300. d. $550.