If the MPC equals 0.7 and the MPM equals 0.10, then the spending multiplier equals
A) 10
B) 9
C) 5
D) 3.3
E) 1.1
Correct Answer:
Verified
Q1: Since imports are positively related to domestic
Q2: Adding net exports to aggregate expenditure always
A)increases
Q3: The marginal propensity to import is defined
Q4: If net exports increase by $400 billion
Q6: The formula for the spending multiplier in
Q7: What is the impact of net exports
Q9: If net exports increase by $350 billion
Q10: Net exports are a leakage from the
Q93: Exports are an injection into the circular
Q96: Imports are a leakage from the circular
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