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

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Definitions:

Advance Directive

A legal document outlining a person's wishes regarding medical treatment in situations where they are unable to communicate.

Nonmaleficence

Fundamental ethical agreement to do no harm. Closely related to the ethical standard of beneficence.

Teratogens

Chemical or physiological agents that may produce adverse effects in the embryo or fetus.

Percutaneous Umbilical Blood Sampling

A medical procedure used to obtain a blood sample from a fetus via the umbilical cord.