The ________ the Marginal Propensity to Import,the ________ the Multiplier

question 158

Multiple Choice

The ________ the marginal propensity to import,the ________ the multiplier.

• A)larger;larger
• B)larger;smaller
• C)larger;more negative
• D)smaller;smaller
• E)None of the above is correct,because the expenditure multiplier is not related to the marginal propensity to import.

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Definitions:

Antitrust Laws

Legislation enacted to prevent anti-competitive practices, monopolies, and to promote fair competition for the benefit of consumers.

Market Share

The portion of total sales in a market captured by a specific company, product, or brand, usually expressed as a percentage.

Monopolistic Competition

A market structure characterized by many sellers offering differentiated products, leading to competition that is neither purely competitive nor purely monopolistic.

Oligopoly

A market structure characterized by a small number of firms dominating the market, which can limit competition and lead to higher prices.