Solved

In a Keynesian Model, If MPM = 0

Question 26

Multiple Choice

In a Keynesian model, if MPM = 0.2, MPC = 0.8, and there is no government sector, what will be the ultimate effect of an autonomous increase in investment of 30 on the imports of the country, other things equal?


A) increase by 6
B) increase by 15
C) increase by 75
D) decrease by 30

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q16: Other things equal, in a Keynesian income

Q17: If a country has a current account

Q18: (This question pertains to Appendix B material.)In

Q19: If expansionary aggregate demand-oriented macroeconomic policy is

Q20: Suppose that a Keynesian import function is

Q21: In a Keynesian open-economy income model, an

Q22: Suppose that autonomous consumption increases but that,

Q23: If the "multiplier" in a Keynesian open

Q24: Given the following Keynesian model:<br> <span

Q25: If an economy has a marginal propensity