Consider a Simple Macro Model with Demand-Determined Output and the Following

question 82

Multiple Choice

Consider a simple macro model with demand-determined output and the following specific parameter values:
a) Marginal propensity to consume out of disposable income = 0.6
b) Marginal propensity to consume out of national income = 0.48
c) Marginal propensity to import = 0.23
The simple multiplier without government and foreign trade in this economy is ________ and the simple multiplier with government and foreign trade in this economy is ________.

• A) 1.67; 1.33
• B) 1.67; 4
• C) 2.5; 1.33
• D) 2.5; 2.5
• E) 2.5; 4

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Definitions:

Openness And Closedness

Refers to the degree of willingness or resistance individuals show towards sharing personal thoughts, feelings, or information with others.

Self-Awareness

The awareness of one's personal traits, emotions, intentions, and wishes.

Expression Of Needs

The process of making one's requirements or desires known, especially in the context of interpersonal relationships.

Save Face

To act or speak in a way that maintains one's reputation or dignity in the eyes of others, often after a mistake or embarrassing situation.