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Hello: I need help with the following questions: Question 1: In an open economy, the macroeconomic income-spending identity says that ) a. investment equals to

Hello: I need help with the following questions:

Question 1:

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In an open economy, the macroeconomic income-spending identity says that ) a. investment equals to national saving plus current account (trade) deficit or surplus. ) b. national saving equals to investment ) c. national saving equals to investment plus capital account decit or surplus. ) d. public saving equals to investment Based on the permanent income hypothesis, which of the following income here will have a higher MPC out of their income. ) a. Movie stars ) b. Fortune 100 corporate CEOs ) (2. Teachers ) d. Farmers . A decrease in the marginal propensity to save will > a. increase the spending multiplier > b. increase the spending multiplier in the short run but will decrease it in the long-run. > c. decrease the spending multiplier ) d. not change the spending multiplier

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