An Increase in the Marginal Propensity to Import Will Cause

question 14

Multiple Choice

An increase in the marginal propensity to import will cause

• A) the ZZ line to become flatter and a given change in government spending (G)to have a larger effect on domestic output.
• B)the ZZ line to become flatter and a given change in government spending (G)to have a smaller effect on domestic output.
• C)the ZZ line to become steeper and a given change in government spending (G)to have a larger effect on domestic output.
• D)the ZZ line to become steeper and a given change in government spending (G)to have a smaller effect on domestic output.

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Definitions:

Managerial Decisions

Choices made by managers or executives within organizations that influence direction, operations, and outcomes, based on analysis and judgement.

Management Authority

pertains to the powers and responsibilities vested in managers to make decisions, direct operations, and enforce policies within an organization.

Unilateral Control

A management approach where decisions are made by one person or entity without consultation or agreement from others involved.

Market Competition

The rivalry among companies selling similar products and services with the goal of achieving revenue, profit, and market share growth.