Consider a Simple Macro Model with Government and Foreign Trade

question 41

Multiple Choice

Consider a simple macro model with government and foreign trade and where the price level is taken as given.The simple multiplier is equal to

• A)1/(1 - MPC).
• B)1/MPC.
• C)1/(1- MPS - t).
• D)1/(1 - (MPC(1 - t)- m )).
• E)1/(1- (MPS(1 - t)- m )).

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Definitions:

Alternation of Generations

A lifecycle in certain plants and algae that alternates between a sexual phase (gametophyte) and an asexual phase (sporophyte).

Gametophytes

Gametophytes are the sexual phase in the life cycle of plants and algae, producing gametes for fertilization.

Mitosis

A type of cell division that results in two daughter cells each having the same number and kind of chromosomes as the parent nucleus, typical of ordinary tissue growth.

Meiosis

A type of cell division that reduces the chromosome number by half, resulting in the production of gametes or spores.