In an open economy, the government purchases multiplier will be smaller the
A) larger the marginal propensity to consume. B) smaller the marginal propensity to import.
C) larger the tax rate. D) All of the above are correct.
C
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Last year your job at the university cafeteria paid you $9 an hour and the price of a music download was $1.00. This year your cafeteria job pays $9.90 per hour and download costs $1.10. You are clearly
A. worse off because of inflation. B. worse off because the download is now relatively more expensive. C. better off because your wage rate went up. D. better off because the download now costs less work.
Who won a Nobel Prize in economics for his work in the development of game theory?
A) John Nash B) Oskar Morgenstern C) Howard Schultz D) John von Neuman
The opportunity cost of producing a bicycle refers to
a. the out-of-pocket payments made to produce the bicycle. b. the value of the goods that were given up to produce the bicycle. c. the bicycle's retail price. d. the marginal cost of the last bicycle produced.
Which of the following is an example of an explicit income transfer?
A. A Social Security pension paid to a retired factory worker. B. The paycheck received by a person who missed work last week because of vacation. C. The check received by a person currently employed by the postal service. D. A payment to a member of the U.S. Army who has recently been transferred to Germany.