If MPS=0.2 and MPM=0.3,the Foreign Trade Multiplier Is

question 11

Multiple Choice

If MPS=0.2 and MPM=0.3,the foreign trade multiplier is:

• A)5
• B)3.3
• C)3
• D)2

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Definitions:

Periodic Payment

Regular payments made over a stipulated period, often in the context of loans or annuities.

Ordinary Annuity

A series of equal payments or receipts that occur at the end of each period of a specified length of time.

Compounded Monthly

Interest calculation method where the interest is calculated and added to the principal balance each month, allowing for the interest to then earn interest in subsequent months.

Monthly Payment

A specific amount of money that is paid every month, commonly associated with loans or leases.