The open economy multiplier is
A. 1/[1 - (MPM - MPC)].
B. 1/[1 - (MPC - MPM)].
C. 1/[1 - MPC - MPM].
D. MPM/[1 - (MPC - MPM)].
Answer: B
You might also like to view...
The vertical axis of a graph that shows a market supply curve indicates the
A. various quantities of output at which the market will be cleared. B. cost of the amount of output produced. C. number of sellers who are in the market for this product. D. prices at which firms would be willing and able to sell their different products.
The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell. The relationship between the price and the quantity the florist can sell is
A) positive. B) negative. C) nonexistent. D) linear. E) cross-sectionally trended.
After the sugar substitute saccharin was found to cause cancer in laboratory mice, its price dropped dramatically. This change in the price was because
A) the supply of saccharin decreased. B) the demand for saccharin decreased. C) the government ordered the price reduction. D) saccharin producers felt sorry for their past customers and were making an honest attempt to compensate them.
Economic theory assumes elected representatives in government vote
A) in the public interest. B) without any interest. C) in their own interest. D) in complete harmony with the interests of the majority of citizen-voters.