The Formula for the Multiplier in an Open Economy Is

question 151

Multiple Choice

The formula for the multiplier in an open economy is

• A)1/1 + marginal propensity to import).
• B)1/1 - slope of the AE curve).
• C)1/1 - marginal propensity to import).
• D)1/1 - MPC).
• E)1/1 + slope of the AE curve).

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Definitions:

Central Traits

Key characteristics of a person's personality that are considered fundamental to their behavior and identity.

Cardinal Trait

A personality characteristic that is so dominant in an individual's personality that it influences nearly every act; according to Gordon Allport’s theory of personality.

Ruling Passion

A dominant interest or driving force that significantly influences a person's decisions and actions throughout their life.

Common Traits

Traits possessed in some degree by all persons.