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Author Question: The open economy multiplier is (Read 35 times)

humphriesbr@me.com

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on: Apr 19, 2019

Question 1

If an economy's 
MPC is 0.8 and the 
MPM is 0.05, then an increase in government spending of $2,000 will increase income by


◦ $5,500.
◦ $8,000.
◦ $10,000.
◦ $20,000.

Question 2

The open economy multiplier is


◦ 1/[1 - (
MPC - 
MPM)].
◦ 1/[1 - 
MPC - 
MPM].
◦ 1/[1 - (
MPM - 
MPC)].
◦ MPM/[1 - (
MPC - 
MPM)].
Principles of Economics ¦ Case, Fair, Oster ¦ 12th Edition
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Marked as best answer by humphriesbr@me.com on Apr 19, 2019

soda0602

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Reply #1 on: Apr 19, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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humphriesbr@me.com

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Reply 2 on: Apr 19, 2019
Excellent

Joy Chen

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  • Posts: 354
Reply 3 on: Yesterday
Wow, this really help

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