In Which of the Following Situations Would the Multiplier Effect

Multiple Choice

In which of the following situations would the multiplier effect on a country's economy of a tax cut implemented by that country's government be greatest?

A) The country is very open to international trade and imports are high relative to GDP.
B) The country's citizens are affluent and tend to save a relatively high proportion of their income.
C) The country's citizens have relatively low incomes and spend little on foreign holidays or imported goods.
D) The country's citizens are cautious and sceptical, leading them to assume that the tax cut will soon be reversed.