Consider the Simplest Macro with Demand-Determined Output

question 43

Multiple Choice

Consider the simplest macro with demand-determined output.If the marginal propensity to consume out of disposable income (MPC) is equal to the marginal propensity to spend out of national income (z) ,then

• A)the marginal propensity to import (m)is larger than the tax rate (t).
• B)the marginal propensity to import (m)is smaller than the tax rate (t).
• C)the simple multiplier is smaller in a closed economy with no government.
• D)the simple multiplier is larger in a closed economy with no government.
• E)there is no effect on the simple multiplier from imports or tax rates.

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Definitions:

Polygamy

A marital practice in which an individual has more than one spouse simultaneously, permitted by cultural or religious traditions in some societies.

Sexual Access

Refers to the opportunity or ability of an individual to find and engage in sexual activities with a partner.

Homogamy

The practice of people getting married to people who are similar to them.

Cohabitation

The condition in which individuals cohabit and engage in a sexual relationship without the bond of matrimony.