The ________ the marginal propensity to import, the ________ the ...

[maychende]

The ________ the marginal propensity to import, the ________ the multiplier.
 
  A) larger; more negative
  B) larger; smaller
  C) smaller; smaller
  D) larger; larger
  E) None of the above is correct, because the expenditure multiplier is not related to the marginal propensity to import.

Question 2

What effect does an increase in the price level have on the demand for money and the demand for money curve?
 
  What will be an ideal response?

[miss.ashley]

Answer to Question 1

B

Answer to Question 2

An increase in the price level increases the demand for money and shifts the demand for money curve rightward.

[maychende]

Gracias!

[apple]

Thanks for the timely response, appreciate it