subject
Business, 26.11.2019 05:31 nehemiahj85

All else equal, in an open economy, how would an increase in the marginal propensity to import (mpi) affect the government purchases multiplier?

a. it increases the multiplier only if marginal propensity to consume (mpc) is higher than the tax rate.

b. it increases the multiplier only if marginal propensity to consume (mpc) is greater than marginal propensity to import (mpi).

c. it decreases the government purchases multiplier

d. it has no effect

e. it increases the government purchases multiplier

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 12:00
In the united states, one worker can produce 10 tons of steel per day or 20 tons of chemicals per day. in the united kingdom, one worker can produce 5 tons of steel per day or 15 tons of chemicals per day. the united kingdom has a comparative advantage in the production of:
Answers: 2
question
Business, 22.06.2019 14:50
One pound of material is required for each finished unit. the inventory of materials at the end of each month should equal 20% of the following month's production needs. purchases of raw materials for february would be budgeted to be:
Answers: 2
question
Business, 23.06.2019 01:30
What are six resources for you decide which type of business to start and how to start it?
Answers: 3
question
Business, 23.06.2019 02:00
Donna and gary are involved in an automobile accident. gary initiates a lawsuit against donna by filing a complaint. if donna files a motion to dismiss, she is asserting that
Answers: 2
You know the right answer?
All else equal, in an open economy, how would an increase in the marginal propensity to import (mpi)...
Questions
question
Arts, 10.02.2021 01:00
question
Mathematics, 10.02.2021 01:00
question
Mathematics, 10.02.2021 01:00
Questions on the website: 13722362