Which of the Following Would Make the Spending Multiplier Larger

question 58

Multiple Choice

Which of the following would make the spending multiplier larger?

• A) A real exchange rate depreciation.
• B) A larger marginal propensity to import.
• C) A smaller marginal propensity to save.
• D) A real exchange rate appreciation.
• E) A small initial trade deficit.

---

Definitions:

Epidemiological Studies

Epidemiological studies are research investigations that examine the patterns, causes, and effects of health and disease conditions in defined populations.

Incidence

The occurrence, rate, or frequency of a disease, crime, or something undesirable within a specified population or area.

Prevalence

The proportion of individuals in a population who have a particular disease or condition at a specific time.

Risk Factors

Elements or conditions that increase the likelihood of developing a disease or injury, including genetic, environmental, and lifestyle factors.