Multiple Choice
In order to isolate the income adjustment mechanism,we assume that:
A) the nation operates under a fixed exchange rate system
B) all prices,wages,and interest rates are constant
C) the nation operates at less than full employment
D) all of the above
Correct Answer:

Verified
Correct Answer:
Verified
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
Q6: The foreign trade multiplier of nation 1
Q7: The S-I function rises because:<br>A)rising I are
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
Q12: An autonomous increase in S from a
Q13: By itself,the automatic income adjustment mechanism is