The open-economy multiplier ________ the closed-economy multiplier.
A. is smaller than
B. equals
C. is larger than
D. It can be smaller or larger than the closed-economy multiplier, depending on the size of MPM and MPC.
Answer: A
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If diseconomies of scale are present and the firm ________ all its inputs, its output ________
A) doubles; more than doubles B) doubles; less than doubles C) increases; increases by the same percentage D) halves; doubles
Under a managed float, a country's central bank
a. buys or sells its currency in order to keep its money supply stable b. buys or sells its currency in order to maintain a stable exchange rate c. may sell its currency in order to prevent a depreciation d. may buy a foreign currency in order to prevent its appreciation e. prints money and uses it to buy foreign currency
Which of the following ideas is the most plausible?
a. Tax revenue is more likely to increase when a low tax rate is increased than when a high tax rate is increased. b. Tax revenue is less likely to increase when a low tax rate is increased than when a high tax rate is increased. c. Tax revenue is likely to increase by the same amount when a low tax rate is increased and when a high tax rate is increased. d. Decreasing a tax rate can never increase tax revenue.
Which of the following people is would be considered a new entrant according to the Bureau of Labor Statistics?
a. a 35-year-old mother of two who will be taking a part-time job at the government agency she worked for before she started her family b. a 67-year-old retiree who decides to begin volunteering at a homeless shelter several days a week c. a 43-year-old who decides to quit his career as a financial analyst to become a yoga instructor d. a 21-year-old who just graduated from college and is looking for a part-time clerical job because he has no work experience