A Decrease in the Marginal Propensity to Import Will Cause

question 12

Multiple Choice

A decrease in the marginal propensity to import will cause:

• A) the multiplier to increase and a given change in government spending to have a larger effect on domestic output.
• B) the multiplier to increase and a given change in government spending to have a smaller effect on domestic output.
• C) the multiplier to decrease and a given change in government spending to have a larger effect on domestic output.
• D) the multiplier to decrease and a given change in government spending to have a smaller effect on domestic output.
• E) the multiplier to increase and a given change in government spending to have no effect on domestic output.

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Definitions:

Specific Performance

A legal remedy requiring a party to execute a contract according to its precise terms, often applied in cases where monetary damages are insufficient.

Monetary Judgement

A legal determination requiring a party to pay a specified sum of money to another.

Express Repudiation

The explicit rejection or refusal to fulfill a duty or obligation set forth in a contract.

Similar Bicycle

A bike that shares likeness or features with another bicycle, often in terms of design, functionality, or brand.