Multiple Choice
Which of the following statements is true?
A) In an open economy, the smaller a nation's marginal propensity to import, the smaller the multiplier.
B) In an open economy, the larger a nation's marginal propensity to consume, the smaller the multiplier.
C) In an open economy, the larger a nation's marginal propensity to export, the smaller the multiplier.
D) In an open economy, the larger a nation's marginal propensity to import, the smaller the multiplier.
Correct Answer:

Verified
Correct Answer:
Verified
Q6: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5231/.jpg" alt=" Figure 11.3 -Refer
Q7: During recessions, government spending usually:<br>A) decrease because
Q8: Briefly explain what a steeper consumption function
Q9: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5231/.jpg" alt=" -Refer to Table
Q10: When the consumption function is expressed as
Q12: If consumption is $25,000 when income is
Q13: The marginal propensity to consume is:<br>A) consumption
Q14: If the marginal propensity to consume is
Q15: In a closed economy with no government,
Q16: In an open economy, the marginal propensity