Author Question: Which of the following reduces the magnitude of the expenditure multiplier? A) higher marginal ... (Read 103 times)

fagboi · **on:** Jun 29, 2018

Which of the following reduces the magnitude of the expenditure multiplier?

A) higher marginal tax rates
B) decrease in saving
C) decrease in the marginal propensity to consume
D) decrease in imports
E) decrease in government purchases of goods and services

Question 2

A country has a comparative advantage in the production of a good if it can

A) trade off producing the good for another good.
B) produce more of the good than another country.
C) produce the good on and remain on its production possibilities frontier.
D) produce more of the good most efficiently.
E) produce the good at the lowest opportunity cost.