Multiple Choice
An increase in the demand for our exports
A) increases aggregate demand and income by the amount of the investment multiplier.
B) increases imports as well,having no impact on aggregate demand.
C) increases aggregate demand and income by less than the amount of the investment multiplier.
D) does not impact aggregate demand because this is consumption by foreign countries.
Correct Answer:
Verified
Correct Answer:
Verified
Q31: The Keynesian explanation of the Great Depression
Q32: Keynes believed that an important source of
Q33: If the consumption function is given by
Q34: An increase in taxes<br>A)reduces income by more
Q35: Which of the following is FALSE?<br>A)As the
Q37: In the Keynesian consumption function<br>A)consumption is a
Q38: If the government wishes to increase its
Q39: Using the simple Keynesian model,consider the case
Q40: Both Keynesians and supply-siders believe that tax
Q41: If the marginal propensity to consume is