Assume that the marginal propensity to consume equals 0.8, the income tax rate equals 0.3, and the marginal propensity to import equals 0.2. The marginal leakage rate is ________ and the size of the multiplier is ________
A) 0.70; 3.33
B) 0.60; 2.5
C) 0.64; 1.56
D) 0.50; 2.0
C
Economics
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The long-run supply curve for a firm in a perfectly competitive industry is:
A) negatively sloped. B) positively sloped. C) vertical. D) horizontal.
Economics
What is a currency system called in which each country tries to keep the value of its currency constant against one another?
(A) A flexible exchange-rate system. (B) A floating currency exchange. (C) A constant pricing system. (D) A fixed exchange-rate system.
Economics