The Value of the Multiplier in an Open Economy Is

question 69

Multiple Choice

The value of the multiplier in an open economy is generally

• A) less than zero.
• B) greater than the multiplier in a closed economy.
• C) identical to the value of the multiplier in a closed economy.
• D) less than the value of the multiplier in a closed economy.
• E) indeterminate because the behavior of exports is unpredictable.

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Definitions:

Passive Investor

An individual or entity that invests in stocks, bonds, or other investments without taking an active role in the management or their investment decisions.

Obligations

Duties or responsibilities imposed by law, contract, or moral duty.

Corporation

A legal entity formed under state law that is separate from its owners, providing limited liability and the ability to raise capital through the issuance of shares.

Organizer

A person responsible for planning and conducting events or activities, often involving logistical coordination and management.