Author Question: In absolute value, the tax multiplier is greater than the government purchases multiplier. ... (Read 145 times)

maegan_martin · **on:** Jun 29, 2018

In absolute value, the tax multiplier is greater than the government purchases multiplier.

Indicate whether the statement is true or false

Question 2

Assuming the United States is the domestic country, if the real exchange rate between the United States and Russia decreases from 28 to 23

A) the prices of U.S. goods and services have increased by 25.5 relative to Russia.
B) the prices of U.S. goods and services have decreased by 5 relative to Russia.
C) the prices of U.S. goods and services have decreased by 18 relative to Russia.
D) the prices of U.S. goods and services have increased by 22 relative to Russia.