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ECS1601 ASSIGNMENT 3 FOR 2026

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ECS1601 ASSIGNMENT 3 FOR 2026

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ECS1601
ASSIGNMENT 03
YEAR: 2026

,Question 1
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Question text
Assume that country A relies more heavily on imports than country B, while other macroeconomic
conditions are the same. If there is a positive relationship between domestic economic activity and
imports, then the multiplier of country A will be_____.


a.
uncertain.

b.
larger than country B’s.

c.
as large as country B’s.

d.
smaller than country B’s.

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Question text

Which diagram illustrates the effects of contractionary fiscal and monetary policies?

Figure 1
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