Author Question: Foreign repercussions of changes in domestic imports cause the true domestic spending multiplier to ... (Read 135 times)

kamilo84 · **on:** Jun 30, 2018

Foreign repercussions of changes in domestic imports cause the true domestic spending multiplier to be less than 1/(MPS+MPI)
a. True
b. False
Indicate whether the statement is true or false

Question 2

If muffins and bagels are substitutes, a higher price for bagels would result in a(n)
a. increase in the demand for bagels.
b. decrease in the demand for bagels.
c. increase in the demand for muffins.
d. decrease in the demand for muffins.