The Open-Economy Multiplier Is Equal to the Reciprocal of the Marginal

question 41

True/False

The open-economy multiplier is equal to the reciprocal of the marginal propensity to save.

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Definitions:

Coevolution

A process by which two or more species reciprocally affect each other's evolution through natural selection.

Human Biology

The scientific study of the biological and physiological aspects of human beings, their behavior, and how they interact with their environment.

Culture

The set of knowledge, beliefs, morals, customs, laws, and habits acquired by humans as members of society, contributing to the societal values and norms.

Monozygotic Twins

Twins that originate from a single fertilized egg, resulting in two individuals who are genetically identical.