Consider a Simple Macro Model with Government and Foreign Trade

question 41

Multiple Choice

Consider a simple macro model with government and foreign trade and where the price level is taken as given.The simple multiplier is equal to

• A)1/(1 - MPC).
• B)1/MPC.
• C)1/(1- MPS - t).
• D)1/(1 - (MPC(1 - t)- m )).
• E)1/(1- (MPS(1 - t)- m )).

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Definitions:

Population Parameter

A numerical characteristic or measure of an entire population, such as a mean (average), variance, or proportion.

Relative Efficiency

A measure comparing the precision or performance of two statistical estimators or methods.

Unbiased

An attribute of an estimator in statistics that means the expected value of the estimator equals the true parameter value it estimates.

Consistent

Referring to an attribute or behavior that is reliable and uniform over time, showing little to no variation.