The Formula for the Multiplier in an Open Economy Is

question 21

Multiple Choice

The formula for the multiplier in an open economy is

• A)1/(1 + slope of the AE curve).
• B)1/(1 - marginal propensity to import).
• C)1/(1 + marginal propensity to import).
• D)1/(1 - slope of the AE curve).
• E)1/(1 - MPC).

---

Definitions:

Psychodynamic Perspective

A psychological approach that emphasizes unconscious processes and past conflicts as influencing behavior in the present.

Reciprocal Determinism

A concept in psychology that explains how an individual's behavior both influences and is influenced by personal factors and the social environment.

Environmental Influences

External factors that affect an individual’s development and behavior, including physical, social, and cultural factors.

Spotlight Effect

The notion that individuals believe their appearance and actions are under closer watch by others than reality suggests.