Multiple Choice
Other things equal, in a Keynesian income model with a foreign sector, the autonomous spending multiplier that applies to an autonomous increase in the country's investment __________.
A) is larger when "foreign repercussions" are included in the model than when such repercussions are not included in the model
B) is of the same size when "foreign repercussions are included in the model as when such repercussions are not included in the model
C) is smaller when "foreign repercussions" are included in the model than when such repercussions are not included in the model
D) is larger than, is the same as, or is smaller when foreign repercussions are included in the model in comparison to when such repercussions are not included in the model - cannot be determined without more information
Correct Answer:
Verified
Correct Answer:
Verified
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