Author Question: In reality, the simple spending multiplier 1/(MPS+MPI) is applicable only to countries whose imports ... (Read 66 times)

ghost! · **on:** Jun 30, 2018

In reality, the simple spending multiplier 1/(MPS+MPI) is applicable only to countries whose imports are a substantial fraction of income in foreign countries.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Other things constant, an increase in the price of beef will:
a. encourage consumers to buy more beef.
b. discourage consumers from buying as much beef.
c. shift the demand curve for beef to the right.
d. shift the demand curve for beef to the left.