Author Question: If the marginal propensity to consume is 0.85 and there are no imports or income taxes, the ... (Read 77 times)

Tirant22 · **on:** Jun 29, 2018

If the marginal propensity to consume is 0.85 and there are no imports or income taxes, the expenditure multiplier is equal to

A) 1 (1 - 0.85 ) = 1 0.15 = 1.45.
B) 0.85 the change in autonomous expenditure.
C) 0.85 1 = 0.85.
D) 1 0.85 = 1.176.
E) 1 - 0.85 = 0.15.

Question 2

In the foreign exchange market, the supply curve of dollars is

A) vertical.
B) downward sloping.
C) identical to the demand curve for dollars.
D) upward sloping.
E) horizontal.