Author Question: An increase in government spending will have a greater impact on net exports when A) the marginal ... (Read 55 times)

fagboi · **on:** Jun 30, 2018

An increase in government spending will have a greater impact on net exports when

A) the marginal propensity to save is smaller.
B) the economy is closed.
C) the sensitivity of investment to income is smaller.
D) all of the above
E) none of the above

Question 2

The data suggest that in the European Union countries, the natural rate of unemployment

A) is now higher than in the U.S.
B) is no longer a relevant concept.
C) has steadily declined over the past two decades.
D) will soon exceed the percentage of the labor force that is working.
E) has become less natural, since it is now almost entirely determined by the policies of a few large corporations.