In an Open Economy,which of the Following Will Cause an Increase

question 3

Multiple Choice

In an open economy,which of the following will cause an increase in the size of the multiplier?

• A)a reduction in the marginal propensity to import
• B)a reduction foreign output
• C)an increase in the marginal propensity to save
• D)all of the above
• E) none of the above

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Definitions:

Development Through Time

The process of change, growth, or evolution of something or someone over a period of time.

Moving Company

A business that provides services to transport goods and household items from one location to another.

Margin of Error

An indicator of the precision of an estimate in survey data, showing the range within which the true value is expected to lie with a certain probability.

Confidence Interval

A range of values, derived from sample statistics, that is believed to contain the true population parameter with a certain probability.