Figure 9-5
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In Figure 9-5, if the second round effect of an increase in autonomous spending of $100,000 is $75,000, then the multiplier is

The economic philosophy that favors strict limits on imports and strong support for exports is called

A) zero sum. B) autarky. C) mercantilism. D) comparative advantage. E) absolute advantage.

Assume the U.S. government wants to hold the value of the dollar at $1.00 U.S. equals 7 Chinese yuan, but it finds that the value of yuan is depreciating against the U.S. dollar. What would be an appropriate policy to reverse this trend?

A. Increase the money supply in the U.S. B. Increase government spending within the U.S. C. Sell U.S. dollars. D. Buy U.S. dollars.