Multiple Choice
The foreign trade multiplier of nation 1 is largest:
A) when there are no foreign repercussions
B) with foreign repercussions for an autonomous increase in nation 1's X that replace domestic production in nation 2
C) with foreign repercussions for an autonomous increase in I in nation 1
D) with foreign repercussions for an autonomous increase in I in nation 2
Correct Answer:
Verified
Correct Answer:
Verified
Q1: The equilibrium level of national income in
Q2: A benefit of automatic adjustment mechanisms is
Q3: In the real world,the automatic income,price,and interest
Q4: The income elasticity of imports is given
Q5: When S exceeds I,an open economy has
Q7: The S-I function rises because:<br>A)rising I are
Q8: In order to isolate the income adjustment
Q9: The marginal propensity to consume measures:<br>A)the ratio
Q10: The improvement in a nation's balance of
Q11: If MPS=0.2 and MPM=0.3,the foreign trade multiplier