If Imports Are Expressed as M = My Where M

question 128

Multiple Choice

If imports are expressed as M = my where M is the level of imports and y is the level of GDP, then the government spending multiplier equals:

• A) b/(b- m).
• B) m/(1- (b- m).
• C) 1/(1- m).
• D) 1/(1- (b- m).

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Definitions:

Assets

Assets of economic worth owned or managed by a person, business, or nation, anticipated to deliver benefits in the future.

Indirect Cost

Costs that are not directly accountable to a cost object (such as a particular project, facility, function, or product), including overheads and administrative expenses.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts, leading to asset liquidation or reorganization.

Accounting Fees

are the costs incurred by businesses or individuals for the services provided by accountants or accounting firms, which may include audits, financial analysis, and tax preparation.