Multiple Choice
Which of the following would make the spending multiplier smaller?
A) a reduction in marginal propensity to save
B) a small initial trade deficit
C) a reduction in the marginal propensity to import
D) a real appreciation
E) none of the above
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q8: In an open economy,a reduction in government
Q9: For this question,assume that the J-curve effect
Q10: Suppose there is a reduction in foreign
Q11: Using the ZZ / Y and NX
Q12: A change in which of the following
Q14: An increase in the marginal propensity to
Q15: Which of the following is true when
Q16: For this question,assume that the Marshall-Lerner condition
Q17: Suppose policy makers want to increase NX
Q18: Using the ZZ / Y and NX