If a country's imports are very important in determining the volume of exports from its trading partners, then:
a. the simple spending multiplier understates the true value of the multiplier.
b. the spending multiplier will be equal to 1/marginal propensity to import.
c. the simple spending multiplier is an accurate measure of the multiplier effect.
d. the simple spending multiplier will be equal to 1/MPC
e. the spending multiplier will be equal to 1/marginal propensity to save.
a
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Other things constant, a higher price for corn tends to increase
A) the supply of corn. B) the quantity supplied of corn. C) the demand for corn. D) the quantity demanded for corn.
Even when there are only a few firms in a market, the market can still be competitive as long as barriers to entry are low. Markets of this type are called
a. monopolistic markets. b. price-taker markets. c. contestable markets. d. convertible markets.