Multiple Choice
The spending multiplier with variable net exports is
A) (1 + MPC) /MPM
B) 1/(1 - MPC)
C) 1/(1 - MPC + MPM)
D) 1/(1 - MPC - MPM)
E) MPC/MPM
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
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
Q7: The larger the marginal propensity to import,
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
Q13: The marginal propensity to import<br>A)is negative<br>B)is positive<br>C)is