One reason the oversimplified multiplier is incorrect is that inflation
a. increases the multiplier by increasing investment spending.
b. increases the multiplier by increasing consumer spending.
c. decreases the multiplier by increasing net exports.
d. decreases the multiplier by decreasing consumer spending.
d
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In the long run, increased consumption spending raises only the price level
a. True b. False Indicate whether the statement is true or false
What has happened to countries that did not participate in the globalization of the world economy?
a. The fraction of the population living below the poverty line in these countries has decreased. b. These countries have been mired in a low-growth path and are experiencing high poverty rates. c. The socialist policies in these countries have caused a big change in the income distribution, something that globalization could not have achieved. d. The growth rate of these countries is stronger than the First World countries. e. The domestic industries in these countries have experienced robust growth.