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The ________ the Marginal Propensity to Import, the ________ the Expenditure

Question 252

Multiple Choice

The ________ the marginal propensity to import, the ________ the expenditure multiplier.


A) smaller; smaller
B) larger; larger
C) larger; smaller
D) larger; more negative
E) None of the above is correct, because the expenditure multiplier is not related to the marginal propensity to import.

Correct Answer:

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