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Questions and Answers
What does the simple open-economy Keynesian model consist of?
What does the simple open-economy Keynesian model consist of?
- Consumption spending, wage rate fluctuations, and export spending
- Consumption spending, investment spending, government spending, and export spending (correct)
- Interest rate changes, government spending, and real income fluctuations
- Investment spending, import spending, and aggregate demand
In the Keynesian income model, what is the focus on?
In the Keynesian income model, what is the focus on?
- Desired expenditures and monetary considerations
- Aggregate spending and price changes
- Real income movements and interest rate changes
- Aggregate spending and real income movements (correct)
What must be subtracted from desired expenditures to obtain the demand for home goods and services in the open-economy Keynesian model?
What must be subtracted from desired expenditures to obtain the demand for home goods and services in the open-economy Keynesian model?
- Import spending (correct)
- Fluctuations in aggregate demand
- Interest rate changes
- Government spending
Why is the economy assumed to not be at full employment in the Keynesian income model?
Why is the economy assumed to not be at full employment in the Keynesian income model?
What is assumed to be constant in the Keynesian income model?
What is assumed to be constant in the Keynesian income model?
How does the incorporation of a foreign trade sector into a Keynesian income model impact the domestic saving/investment relationship and the multiplier?
How does the incorporation of a foreign trade sector into a Keynesian income model impact the domestic saving/investment relationship and the multiplier?
What did economist Catherine Mann suggest about the relationship between the U.S. economic boom and its trade deficit?
What did economist Catherine Mann suggest about the relationship between the U.S. economic boom and its trade deficit?
What would lead to a temporary narrowing of the U.S. trade gap, according to economist Catherine Mann?
What would lead to a temporary narrowing of the U.S. trade gap, according to economist Catherine Mann?
Based on economist Catherine Mann's statement, what is expected if there are structural reforms encouraging faster global growth and boost in U.S. household savings rates?
Based on economist Catherine Mann's statement, what is expected if there are structural reforms encouraging faster global growth and boost in U.S. household savings rates?
What does economist Catherine Mann suggest is required to put the U.S. current account and trade deficits back on a sustainable path?
What does economist Catherine Mann suggest is required to put the U.S. current account and trade deficits back on a sustainable path?
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