Multiple Choice
Given the following import function for a country in a Keynesian income model: M = 15 + 0.10Y
A) At an income level of 100, imports are 10.
B) An increase in the 0.10 to a value of 0.15 would, other things equal, increase the size of the country's open-economy multiplier (i.e., autonomous spending multiplier with a foreign sector)
C) At an income level of 200, the country's average propensity to import would be 0.175.
D) An increase in the 15 to a value of 20 would, other things equal lead to an increase in the country's national income.
Correct Answer:
Verified
Correct Answer:
Verified
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