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:

Chemoreceptors

Sensory cells or organs responsive to chemical stimuli, involved in detecting changes in the chemical composition of the environment or body.

Nociceptor

A sensory receptor that responds to potentially damaging stimuli by sending signals to the spinal cord and brain, which is interpreted as pain.

Substance P

A peptide involved in transmitting pain messages to the brain and is involved in inflammatory processes.

Interneurons

Neurons that transmit signals between sensory and motor neurons, playing a critical role in the central nervous system by integrating sensory input and motor output.