Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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:
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 multiplierStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started