In an Open Economy, the Size and Effectiveness of the Multiplier

question 84

Multiple Choice

In an open economy, the size and effectiveness of the multiplier _____.

• A) is relatively high because imports always exceed exports in an open economy
• B) is relatively lower because exports are an injection in the circular flow of income
• C) is relatively higher because the marginal propensity to export is higher
• D) is relatively lower because imports are a leakage from the circular flow of income

Know the historical events that have shaped federal fiscal policy.

Describe unfunded mandates and their impact on state and local governments.

Understand the innate aspects of human cognition related to social categorization and individual consideration.

Comprehend how self-fulfilling prophecies operate within educational and social contexts.

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Definitions:

Deindividuation

A psychological state where individuals lose self-awareness and a sense of individuality, often resulting in uninhibited or deviant behavior, usually within a group context.

Lost Anonymity

The situation in which an individual's identity becomes known after previously being unknown or unacknowledged.

Prosocial

Acting in ways that tend to benefit others.

Reciprocal Helping

Reciprocal helping is a social behavior where an individual aids another with the expectation that the help will be returned in the future, enhancing survival chances for both.