If planned construction investment increases by $30 billion and the MPC is two-thirds, total output will increase by
a. $30 billion.
b. $20 billion.
c. $45 billion.
d. $90 billion.
d. $90 billion.
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Refer to Table 11.1. What is the value of the marginal propensity to import?
A) 0.15 B) 0.25 C) 0.6 D) 0.9
The difference between the current account balance and net exports is
A) the capital account. B) net unilateral transfers plus net factor payments from abroad. C) adjustments in net foreign assets. D) income receipts from foreign assets.
If the inflation rate in Japan is higher than the inflation rate in the United States
A) there will be an increase in U.S. imports from Japan. B) there will be an increase in Japanese exports to the United States. C) there will be no change is U.S. imports from Japan. D) there will be a decrease in U.S. imports from Japan.
The concerns about the 2009 $787 billion stimulus by the Obama Administration were that
a. it was too small. b. it was too large. c. it was not well designed. d. Some economists opposed any stimulus whatsoever. e. All of the above.