In an open economy, which of the following will cause a reduction ...

[torybrooks]

In an open economy, which of the following will cause a reduction in the size of the multiplier?
 
  A) an increase in the marginal propensity to import
  B) an increase on foreign output
  C) a reduction in the marginal propensity to save
  D) all of the above
  E) none of the above

Question 2

Using current exchange rates, the U.S. standard of living is ranked
 
  A) higher than it would be under the purchasing power parity method.
  B) lower than it would be under the purchasing power parity method.
  C) number one in the world.
  D) among the lowest in the world.
  E) none of the above

[canderson530]

Answer to Question 1

A

Answer to Question 2

B

[torybrooks]

Excellent

[momolu]

TYSM