An Increase in the Marginal Propensity to Import Will Cause

question 19

Multiple Choice

An increase in the marginal propensity to import will cause

• A)the multiplier to increase and a given change in government spending (G)to have a larger effect on domestic output.
• B)the multiplier to increase and a given change in government spending (G)to have a smaller effect on domestic output.
• C)the multiplier to decrease and a given change in government spending (G)to have a larger effect on domestic output.
• D)the multiplier to decrease and a given change in government spending (G)to have a smaller effect on domestic output.

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Definitions:

Autonomic Nervous System

The part of the nervous system that controls involuntary actions of the body, such as heart rate, digestion, and respiratory rate.

Relay Station

A site or mechanism in the body or in a communication system for passing signals or messages from one part or member to another.

Thalamus

A structure in the brain that acts as a relay station, directing sensory signals to the appropriate areas in the cortex.

Brainstem

The lower part of the brain that connects the cerebrum with the spinal cord and controls vital functions such as heart rate, breathing, and blood pressure.