Multiple Choice
An autonomous fall in M from a condition of equilibrium in national income and in the trade balance results in the nation's income:
A) rising and its trade balance turning to deficit
B) falling and its trade balance turning into surplus
C) rising and its trade balance turning into surplus
D) rising and the trade balance remaining in equilibrium
Correct Answer:
Verified
Correct Answer:
Verified
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
Q8: In order to isolate the income adjustment
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
Q15: A depreciation of a deficit nation's currency