Which of the following reduces the magnitude of the expenditure multiplier?
A) higher marginal tax rates
B) decrease in saving
C) decrease in the marginal propensity to consume
D) decrease in imports
E) decrease in government purchases of goods and services
A
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Which of the following is a FALSE statement about the International Monetary Fund (IMF)?
A) The IMF was created after the Bretton Woods Conference to help to maintain the international fixed exchange rate system that was introduced. B) The IMF lends to national governments, initially to maintain the fixed exchange rate system, and today to deal with debt or currency crises. C) Multinational corporations can get IMF loans if they agree to invest in economies that are internationally perceived as risky and otherwise unlikely to receive direct foreign investment. D) One of the criticisms of the IMF and other international governmental organizations that deal with the global economy is that their decision making may be biased toward policies that favor industrialized nations.
A rational individual would rather receive $1,000 today than receive $1,100 in one year if the applicable nominal interest rate was 12%
a. True b. False Indicate whether the statement is true or false