A. 4
B. 25
C. 6
D. 2.5
Related Mcqs:
- Assuming there is no government or foreign sector, if the MPC is 8 the multiplier is ?
A. 5
B. 8
C. 2
D. 1.25 - Assuming there is no government or foreign sector the formula for the multiplier is ?
A. 1/MPS
B. 1/(1+ MPC)
C. 1 – MPC
D. 1/MPC - If the MPC is 0.5 the multiplier is ?
A. 2
B. 1/2
C. 0.2
D. 20 - If the marginal propensity of consume MPC is 0.75 the value of the multiplier is ?
A. 4
B. 7.5
C. 5
D. 0.75 - Assume there is no government or foreign setor, If the MPC is 75 a Rs20 million decrease in planned investment will cause aggregate output to decrease by ?
A. Rs80 million
B. Rs20 million
C. Rs 15 million
D. Rs26.67 million - Micheal Roemer’s three-sector model shows that growth in the booming export sector I- reduces the price of foreign exchange II- retards other sectors’ growth by reducing incentives to export other commodities III- reduces incentives to replace domestic goods for imports IV- raises factor and input prices for non-booming sectors ?
A. I and III only
B. II and III only
C. I, II and III only
D. I, II , III only IV - If a government uses barriers to foreign products such as biases against a foreign company’s bids or product standards that go against a foreign company’s product features the government is using ?
A. Protectionism
B. exchange controls
C. exchange facilitators
D. nontariff trade barriers - If banks and the private sector decide to hold less cash the money multiplier will be ?
A. Unchanged
B. Larger
C. Smaller
D. Unstable - An increase in the marginal propensity to consumer (MPC) ?
A. raises the value of the multiplier
B. has no impact on the value of the multiplier?
C. rarely occurs because the MPC is set by congressional legislation
D. lowers the value of the multiplier - What is called that bank which regularly accepts foreign currency-denominated deposits and makes foreign currency-denominated deposits and makes foreign currency loans ?
A. Eurobank
B. Foreign bank
C. International Bank
D. Multinational Bank
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