Refer to Table 15.3. Based on the data in the table, the primary budget deficit necessary to make fiscal policy sustainable in Cordelia is ________ of GDP

An increase in the marginal propensity to save (MPS)

A) increases autonomous consumption. B) increases the value of the multiplier. C) increases the marginal propensity to consume (MPC). D) none of the above.

An economy that has no interaction with the rest of the world is called

A) an isolated economy. B) a closed economy. C) a parochial economy. D) a rogue nation.