The EEC is a group of
a. South American countries
b. Eastern European countries
c. Asian countries
d. Middle Eastern countries
e. Western European countries
E
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If the marginal propensity to save (MPS) increases, the multiplier
A) decreases. B) can either increase or decrease, depending on what happens to the marginal propensity to consume (MPC). C) increases. D) stays the same.
Free trade may lead to less pollution because
A. higher income can lead to political pressure on governments to enact tougher environmental protection policies. B. competition among nations leads to stricter pollution standards. C. it results in increased production and consumption of goods and services. D. imported products are produced using cleaner production techniques than domestic products.