If a Country's Imports Are Very Important in Determining the Volume

question 55

Multiple Choice

If a country's imports are very important in determining the volume of exports from its trading partners, then:

• A) the simple spending multiplier understates the true value of the multiplier.
• B) the spending multiplier will be equal to 1/marginal propensity to import.
• C) the simple spending multiplier is an accurate measure of the multiplier effect.
• D) the simple spending multiplier will be equal to 1/MPC
• E) the spending multiplier will be equal to 1/marginal propensity to save.

---

Definitions:

Genetic Predisposition

The increased likelihood of developing a particular disease or trait based on a person's genetic makeup.

History of Trauma

Refers to the personal and collective experiences and emotional responses to deeply distressing or disturbing events in an individual's or group's past.

Borderline Personality Disorder

A mental health disorder characterized by unstable moods, behavior, and relationships.

Negative Emotional Reactions

Refers to undesirable feelings or emotions that result from certain experiences or thoughts.