Question 1
A $250 million decrease in government spending causes
◦ a larger change in a closed economy than in an open economy if the
MPM is zero.
◦ a larger change in a closed economy than in an open economy.
◦ a larger change in an open economy than in a closed economy.
◦ an equal amount of change in equilibrium output in an open and a closed economy.
Question 2
Which of the following statements is
true?
◦ The larger a nation's marginal propensity to consume, the larger the open-economy multiplier.
◦ The larger a nation's marginal propensity to import, the larger the open-economy multiplier.
◦ The smaller a nation's marginal propensity to export, the larger the open-economy multiplier.
◦ The smaller a nation's marginal propensity to save, the smaller the open-economy multiplier.
True-color view of Mars seen through NASA's Hubble Space Telescope in 1999
TrUe....FaLsE
Which of the following statements is true of linkage?
True Dover Sole
E9-23 Prepare income statements Explain the difference in operating income