Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) The open-economy multiplier is smaller than the closed-economy multiplier for investment but larger for government spending.
B) The open-economy multiplier is smaller than the closed-economy multiplier for government spending but larger for investment.
C) The open-economy multiplier is smaller than the closed-economy multiplier for both government spending and investment.
D) The open-economy multiplier is larger than the closed-economy multiplier for both government spending and investment.
E) The open-economy multiplier is smaller than the closed-economy multiplier for government spending, but they are equal for investment.