If the marginal propensity to consume in a country is 0.5, then the value of the tax multiplier is:
a. ?1

Refer to the scenario above. Which of the following will happen if she keeps the dress for herself?

A) The GDP of her country will increase by $180. B) The trade deficit of her country will decrease. C) The GDP of her country will remain unchanged. D) The trade surplus of her country will decrease.

In the long run, when the Fed increases the quantity of money, the

A) price level falls. B) nominal interest rate falls. C) price level rises. D) real interest rate rises. E) demand for money decreases.