The Spending Multiplier Equals 1/marginal Propensity to Save If an Economy

question 15

Multiple Choice

The spending multiplier equals 1/marginal propensity to save if an economy:

• A) has a trade surplus.
• B) is open to international trade.
• C) does not trade with any other country.
• D) has a higher level of saving than consumption.
• E) reduces its investment expenditures to zero.

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Definitions:

Echoing

The repetition of sounds, words, or phrases, often seen as a communicative behavior or auditory phenomenon.

Recasting

In language learning, the technique of repeating what someone has said but in a corrected or restructured form to demonstrate proper use.

Language Development

Language development encompasses the process by which individuals acquire the capacity to perceive, produce, and use words to communicate.

Elephants

Large mammals of the family Elephantidae and the order Proboscidea, known for their large ears, tusks, and memory.