At each round of the multiplier process, increases in income:
a. leak out of the expenditures stream in the form of investment and taxes.
b. leak out of the expenditures stream in the form of saving and imports.
c. are matched by a smaller increase in expenditures.
d. result in even greater increases in expenditures due to investment and exports.
e. result in no change in total expenditures.
c
You might also like to view...
If the United States and other developed nations pay the cost of reducing public emissions, developing nations such as China could benefit from the reduction while not contributing to it In this sense, one can think of reducing carbon emissions as being like a
A) quasi-private good. B) private good. C) quasi-public good. D) public good.
Suppose that Mexico and Canada both peg their currencies to the U.S. dollar. The relationship between the Mexican peso and the Canadian dollar is best described as a(n):
A) indirect peg. B) fixed exchange rate system. C) currency union. D) free trade area.
The standard way to measure the effects of debt in an economy is to look at the stock of debt relative to
A) the total budget. B) GDP. C) total government spending. D) federal tax revenue.
Which of the following is a coupon bond?
A) a U.S. savings bond B) a U.S. Treasury bill C) a U.S. Treasury note or bond D) a zero-coupon bond