The open economy multiplier is calculated as follows:
A) 1/[1-(marginal propensity to consume + marginal propensity to invest)]
B) 1/[1-(marginal propensity to consume + marginal propensity to import)]
C) 1/[1-(marginal propensity to consume + marginal propensity to invest + marginal propensity to import)]
D) 1/[1-(marginal propensity to consume + marginal propensity to invest - marginal propensity to import)]
D
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Money must be ________ which includes the fact that is should ________
A) generally accepted as a means of payment; be recognizable and divisible into small parts B) backed by gold; not decrease in value over time C) whatever is used in a barter system; transferable across countries' borders D) accepted as a means of payment across countries' borders; not be fiat money E) in physical form; not be transferable using electronic means
Explain why checks on principals might be necessary
What will be an ideal response?