The Larger the Marginal Propensity to Import,the Larger the Government

question 192

True/False

The larger the marginal propensity to import,the larger the government purchases multiplier.

Assess the challenges and opportunities presented by global population dynamics for economic development.

Examine the influence of technological advancement and resource availability on economic growth.

Understand the role of infrastructure development and its primary responsibility sectors.

Recognize the importance of lowering trade barriers for developing countries' products.

---

Definitions:

Social Security Trust Fund

A U.S. government fund that holds the surplus contributions collected from Social Security payroll taxes, used to pay out benefits.

Net Asset

The total assets of an individual or entity minus all its liabilities.

Retirement System

A structured program, often government-sponsored or managed by private entities, designed to provide financial support to individuals during their retirement years.

Pay-As-You-Go Principles

A funding approach where current revenues (like taxes) are used to pay for current expenses, avoiding debt by paying for services and benefits as they are received.