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The open economy multiplier is:

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Question

1. Saving is always equal to;A) planned less unintended investment.;B) actual investment.;C) planned investment.;D) unintended investment.;2. Other things equal, if a change in the tastes of Canadian consumers causes them to purchase more foreign goods at each level of Canadian GDP;A) unemployment will decrease domestically.;B) Canadian GDP will fall.;C) inflation will occur domestically.;D) Canadian real GDP will rise.;S+M curve shits to the left.;3. The open economy multiplier is;A) larger than the simple multiplier because the latter embodies fewer leakages.;B) larger than the simple multiplier because the latter embodies more leakages.;C) smaller than the simple multiplier because the latter embodies fewer leakages.;D) smaller than the simple multiplier because the latter embodies more leakages.

 

Paper#22979 | Written in 18-Jul-2015

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