Imports

question 380

Multiple Choice

Imports

• A) increase the size of the multiplier because imports are paid for by exports.
• B) increase the size of the multiplier because imports make disposable income less than real GDP.
• C) decrease the size of the multiplier because imports lead to an increase in taxes and government purchases.
• D) decrease the size of the multiplier because spending on imports does not increase real GDP in the domestic nation.

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Definitions:

Fixation

An obsessive interest or feeling that may lead to an inability to adapt to different situations.

Superego

In psychoanalytic theory, the part of a person's mind that acts as a self-critical conscience, reflecting social standards learned from parents and teachers.

Collective Unconscious

A concept in analytical psychology, referring to the structures of the unconscious mind shared among beings of the same species.

Individualism

A social theory favoring freedom of action for individuals over collective or state control, emphasizing individual initiative and independence.