Which of the following statements about the income-expenditure must be true? Other things equal; the multiplier for an open economy with a non-negative marginal propensity to import cannot be larger than for a closed economy. b. the multiplier for a closed economy will be larger, the higher is the marginal tax rate. O c. the balanced budget multiplier is equal to one. Od. an increase in the marginal propensity to save will increase the size of the multiplier. е. an increase in the marginal tax rate causes the PAE curve to become steeper.

Which of the following statements about the income-expenditure must be true? Other things equal; the multiplier for an open economy with a non-negative marginal propensity to import cannot be larger than for a closed economy. b. the multiplier for a closed economy will be larger, the higher is the marginal tax rate. O c. the balanced budget multiplier is equal to one. Od. an increase in the marginal propensity to save will increase the size of the multiplier. е. an increase in the marginal tax rate causes the PAE curve to become steeper.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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