A $100 Million Increase in Government Spending Causes

Multiple Choice

A $100 million increase in government spending causes

A) an equal amount of change in equilibrium output in an open and a closed economy.
B) a larger change in an open economy than in a closed economy.
C) a larger change in a closed economy than in an open economy.
D) a larger change in a closed economy than in an open economy if the MPM is zero.