The Multiplier Effect of a Change in Foreign Autonomous Expenditures

question 100

Multiple Choice

The multiplier effect of a change in foreign autonomous expenditures in the U.S.:

• A)is zero because the U.S.is a closed economy.
• B)is large because the United States imports a significant amount of foreign goods and services.
• C)is large because the United States exports domestic products to every part of the world.
• D)is small because the U.S.economy is too large to be significantly affected by foreign aggregate expenditures.
• E)is small because U.S.foreign trade is not large enough to be counted as part of domestic GDP.

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