The Value of the Foreign Trade Multiplier Equals the Reciprocal

question 102

Multiple Choice

The value of the foreign trade multiplier equals the reciprocal of the sum of the marginal propensities to:

• A) Save plus import
• B) Import plus invest
• C) Consume plus export
• D) Save plus import.

---

Definitions:

Reference-Group Effects

The influence that a group, to which an individual compares themselves, has on that individual's behavior, attitudes, or opinions.

Big Five Personality Dimensions

A model that describes human personality using five broad traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Perception Of National Character

Asking people to describe the typical member of a culture.

Individualistic Cultures

Cultures that value the independence, autonomy, and self-expression of individuals over the collective group.