Author Question: Pierre is French Canadian, and like many Canadians he is experiencing booming good economic times. ... (Read 85 times)

krzymel · **on:** Jun 30, 2018

Pierre is French Canadian, and like many Canadians he is experiencing booming good economic times. His good fortune is likely to impact U.S. aggregate demand in what way?
a. Positively, because he prefers to make all his purchases in Canada from Canadian firms.
b. Negatively, because he prefers to make all his purchases in Canada from Canadian firms.
c. Negatively, since we are all members of North American Free Trade Zone.
d. Positively, since he will be in a better position to purchase U.S.-made goods.

Question 2

What is the value of the spending multiplier when MPC = 0.85 and MPI = 0.3?
a. 1.82
b. 0.85
c. 2.22
d. 1.18
e. 2.50