In the Spending Allocation Model, the Government Share of GDP

question 78

True/False

In the spending allocation model, the government share of GDP is assumed to be unaffected by the real exchange rate, being instead directly determined by government officials.

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Definitions:

Balance Of Trade

A measure of the difference between exports from and imports into a country.

Disproportionately Higher

Significantly above the expected or average level, often used to describe quantities, values, or rates that far exceed what is normal or equitable.

Imports

Goods or services brought into one country from another for sale or use.

Quota

A direct limit on the number of goods that can be imported into or exported from a country