In Which One of the Following Situations Is the "Multiplier

question 15

Multiple Choice

In which one of the following situations is the "multiplier" for a given autonomous change in investment spending the largest?

• A) MPS = 0.4, MPM = 0.2, t = 0.25
• B) MPS = 0.4, t = 0.25 and the economy has no foreign trade.
• C) MPS = 0.25, MPM = 0.1, t = 0.2
• D) MPS = 0.25, MPM = 0.1, t = 0.2, and the economy has "foreign "repercussions."

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