Solved

In an Open Economy,the Marginal Propensity to Consumer Is 0

Question 1

Short Answer

In an open economy,the marginal propensity to consumer is 0.75,and the marginal propensity to import is 0.15.Calculate the change in equilibrium GDP if exports fall by $50 billion.

Correct Answer:

verifed

Verified

Related Questions

Q2: What are some of the disadvantages of

Q2: A benefit of automatic adjustment mechanisms is

Q3: When considering the impact of foreign repercussions

Q3: In the real world,the automatic income,price,and interest

Q4: According to the absorption approach,under what conditions

Q6: The S-I function is upward sloping because:<br>A)

Q8: An open economy can be described by

Q9: In the Keynesian model,in short-run equilibrium,the trade

Q12: An autonomous increase in S from a

Q15: A depreciation of a deficit nation's currency