Multiple Choice
When the marginal propensity to consume foreign imports (MPCF) rises, ceteris paribus, what happens to the trade balance?
A) It increases.
B) It decreases.
C) It depends on what happens to the MPC of domestic goods.
D) It will not change.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q143: When a depreciation in the nation's real
Q144: When the real exchange rate decreases in
Q145: Assume the economy is in equilibrium. If
Q146: At some rate of interest, i, domestic
Q147: With expected inflation equal to zero in
Q148: Suppose that the dollar real exchange rate
Q149: If taxes fall and foreign income falls,
Q151: When the interest rate is so low
Q152: What assumption results in investment depending only
Q153: There are a number of factors that