Compared to the Magnitude of the Expenditure Multiplier in an Economy

question 268

Multiple Choice

Compared to the magnitude of the expenditure multiplier in an economy without imports, the expenditure multiplier in an identical economy with imports is

• A) always smaller.
• B) always larger.
• C) smaller only if imports exceed exports.
• D) larger only if exports exceed imports.
• E) exactly the same.

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