Multiple Choice
The larger the marginal propensity to import, the __________ during each round of spending and __________ the resulting spending multiplier.
A) greater the leakage; the smaller
B) smaller the leakage; the smaller
C) smaller the leakage; the larger
D) greater the leakage; the larger
E) smaller the injection; the larger
Correct Answer:

Verified
Correct Answer:
Verified
Q2: If net exports increase by $350 billion
Q3: If net exports increase by $450 billion
Q4: The concept of variable net exports is
Q5: When variable net exports are added to
Q6: In a model which includes variable net
Q8: The spending multiplier with variable net exports
Q9: Exhibit 10-8<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4913/.jpg" alt="Exhibit 10-8
Q10: If variable net exports increase by the
Q11: If the MPC equals 0.7 and the
Q12: If net exports increase by $400 billion