Question
Please help me sort out these problems I'm stuck on in my test review. The __________ effect is the tendency of a given change in
Please help me sort out these problems I'm stuck on in my test review.
The __________ effect is the tendency of a given change in exogenous planned expenditure to cause a greater change in equilibrium GDP.
a. twin deficit
b. unplanned investment
c. multiplier
d. Keynes
If there is an exogenous $1 billion increase in exports, beginning from a state of equilibrium, what would be the expected?
a. A decrease in equilibrium GDP
b. An increase of less than $1 billion in equilibrium GDP
c. An increase of more than $1 billion in equilibrium GDP
d. No change in equilibrium GDP
For the economy to be considered to be in equilibrium, imports ______ equal exports and investment ______ equal saving.
a. must; must
b. must; need not
c. need not; need not
d. need not; must
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