Foreign repercussions of changes in domestic spending may cause:
a. the GDP gap to be larger than the recessionary gap.
b. the equilibrium income to increase by an amount equal to the change in net exports.
c. the actual spending multiplier to be larger than the reciprocal of the marginal propensity to save plus the marginal propensity to import.
d. equilibrium income to rise by a smaller amount than evidenced by the multiplier effect of autonomous spending increase.
e. the real GDP to be larger than potential GDP.
c
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In the United States, the type of corporation that makes up the largest percentage of all business enterprises is ___________
a. mining b. services c. manufacturing d. finance
The money supply is $10 million, currency held by the nonbank public is $2 million, and the reserve—deposit ratio is 0.2. Bank reserves are equal to
A) $1.6 million. B) $2 million. C) $4 million. D) $8 million.