This topic contains a solution. Click here to go to the answer

Author Question: Foreign repercussions of changes in domestic spending may cause: a. the GDP gap to be larger than ... (Read 83 times)

leilurhhh

  • Hero Member
  • *****
  • Posts: 560
Foreign repercussions of changes in domestic spending may cause:
 a. the GDP gap to be larger than the recessionary gap.
  b. the equilibrium income to increase by an amount equal to the change in net exports.
  c. the actual spending multiplier to be larger than the reciprocal of the marginal propensity to save plus the marginal propensity to import.
  d. equilibrium income to rise by a smaller amount than evidenced by the multiplier effect of autonomous spending increase.
  e. the real GDP to be larger than potential GDP.

Question 2

If the demand for milk is downward sloping, then an increase in the price of milk will result in a(n):
 a. increase in the demand for milk.
 b. decrease in the demand for milk.
 c. increase in the quantity of milk demanded.
  d. decrease in the quantity of milk demanded.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

frankwu0507

  • Sr. Member
  • ****
  • Posts: 322
Answer to Question 1

c

Answer to Question 2

d




leilurhhh

  • Member
  • Posts: 560
Reply 2 on: Jun 30, 2018
Excellent


phuda

  • Member
  • Posts: 348
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

Cyanide works by making the human body unable to use oxygen.

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

Did you know?

Addicts to opiates often avoid treatment because they are afraid of withdrawal. Though unpleasant, with proper management, withdrawal is rarely fatal and passes relatively quickly.

Did you know?

Chronic marijuana use can damage the white blood cells and reduce the immune system's ability to respond to disease by as much as 40%. Without a strong immune system, the body is vulnerable to all kinds of degenerative and infectious diseases.

Did you know?

The first-known contraceptive was crocodile dung, used in Egypt in 2000 BC. Condoms were also reportedly used, made of animal bladders or intestines.

For a complete list of videos, visit our video library