In an open economy, the government purchases multiplier will be larger the
A) larger the marginal propensity to consume. B) smaller the marginal propensity to import.
C) smaller the marginal income tax rate. D) All of the above are correct.
D
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Which of the following is the national security argument against free trade?
A) A country must protect firms from dumping by foreign companies. B) A country must protect new industries to give them a chance to mature before facing foreign competition. C) A country must protect its consumers from foreign influences. D) A country must protect industries that produce defense equipment and armaments. E) A country must preserve its jobs.
A product that has a negative income elasticity of demand is ________ good
A) a complementary B) a substitute C) a normal D) an inferior E) a negative