Which of the Following Statements Is True

question 22

Multiple Choice

Which of the following statements is true?

• A) The open-economy multiplier is smaller than the closed-economy multiplier for investment but larger for government spending.
• B) The open-economy multiplier is smaller than the closed-economy multiplier for government spending but larger for investment.
• C) The open-economy multiplier is smaller than the closed-economy multiplier for both government spending and investment.
• D) The open-economy multiplier is larger than the closed-economy multiplier for both government spending and investment.
• E) The open-economy multiplier is smaller than the closed-economy multiplier for government spending, but they are equal for investment.

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Definitions:

Cognitive Process

The mental actions or processes of acquiring knowledge and understanding through thought, experience, and the senses.

Attentional Capacities

The maximum amount or volume of information or stimuli an individual can focus on or process effectively at one time.

Fodor's Modularity Hypothesis

A theory that suggests the mind is composed of innate, specialized modules, each with a specific function.