The smaller the slope of the aggregate planned expenditure (AE) curve, the
A) larger are imports.
B) smaller the multiplier.
C) larger the multiplier.
D) larger are exports.
E) larger is the marginal tax rate.
B
Economics
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According to the Ricardo-Barro effect, what is the effect on the real interest rate of a government budget surplus?
What will be an ideal response?
Economics
Suppose that the government of Summerfield spends $2 trillion in 2015 and receives tax revenues of $1.5 trillion. Which of the following is TRUE?
A) Summerfield has a budget surplus of $0.5 trillion. B) Summerfield has a budget deficit of $0.5 trillion. C) Summerfield has a trade deficit of $0.5 trillion. D) Summerfield has a trade surplus of $0.5 trillion.
Economics