A hypothetical open economy has a marginal propensity to import (MPI) equal to 0.2 and a marginal propensity to consume equal to 0.7 . Assume that the economy is initially in equilibrium. What will happen to the equilibrium real GDP if a tourist visits the country and spends $100 that she brought with her?

Which of the following is included in the supply of U.S. dollars in the market for foreign-currency exchange in the open-economy macroeconomic model?

a. a U.S. bank loans dollars to Tom to buy a U.S. made motorcycle b. a U.S. tire maker wants to build a new factory in China c. a U.S. company wants to import goods to sell in its retail stores d. All of the above are correct.

According to the BCG Matrix, these products or services exhibit low growth or market share and are often referred to as "cash traps."

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