An increase in the marginal propensity to import will
A) raise imports and raise equilibrium income.
B) lower imports and raise equilibrium income.
C) lower the multiplier and reduce equilibrium income.
D) raise the multiplier and reduce equilibrium income.
C
Economics
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What are the economic functions of depository institutions?
What will be an ideal response?
Economics
Suppose there is a surplus in the money market
a. This could have been created by an increase in the money supply. The value of money will rise. b. This could have been created by an increase in the money supply. The value of money will fall. c. This could have been created by a decrease in the money supply. The value of money will rise. d. This could have been created by a decrease in the money supply. The value of money will fall.
Economics