In an open economy, the government purchases multiplier will be smaller the
A) larger the marginal propensity to consume. B) smaller the marginal propensity to import.
C) larger the tax rate. D) All of the above are correct.
C
Economics
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If oil is considered a non-renewable resource, than oil is a. an unlimited resource
b. a scarce resource. c. not a productive resource. d. has no opportunity cost.
Economics
Two firms compete as a Stackelberg duopoly. The demand they face is P = 40 ? Q. The cost function for each firm is C(Q) = 4Q. The profits of the two firms are:
A. ?L = $81; ?F = ?$40.5. B. ?L = $162; ?F = $40.5. C. ?L = $162; ?F = $81. D. ?L = $81; ?F = $40.5.
Economics