Question $66(1$ point$)$

In an open economy, the government purchases multiplier will be

smaller as the marginal propensity to tax decreases.

larger as the marginal propensity to import decreases.

larger as lump sum taxes fall.

larger as the marginal propensity to consume decreases.

smaller as the marginal propensity to import decreases.

Question $67(1$ point$)$

According to the short$-$run Phillips curve, if unemployment is $3\mathrm{.}2\%$ and inflation is $1\mathrm{.}3\%,$ an increase in the inflation rate might result in which of the following?

an increase in the unemployment rate to $3\mathrm{.}4\%$

permanently higher inflation and an unemployment rate of $3\mathrm{.}2\%$

a decrease in the unemployment rate to $3\mathrm{.}0\%$

a return to the original inflation rate of $1\mathrm{.}3\%$

a decrease in the demand for labour in the economy